Is ABM Industries (ABM) a Great Value Stock Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is ABM Industries (ABM). ABM is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 10.96. This compares to its industry's average Forward P/E of 29.87. Over the past year, ABM's Forward P/E has been as high as 61.52 and as low as 10.01, with a median of 12.96.
Finally, investors should note that ABM has a P/CF ratio of 11.87. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. ABM's current P/CF looks attractive when compared to its industry's average P/CF of 36.98. Within the past 12 months, ABM's P/CF has been as high as 16.87 and as low as 6.15, with a median of 13.20.
These are just a handful of the figures considered in ABM Industries's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ABM is an impressive value stock right now.
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