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Is Acco Brands (ACCO) Stock Undervalued Right Now?

Zacks Equity Research

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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is Acco Brands (ACCO). ACCO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 6.01, while its industry has an average P/E of 13.89. ACCO's Forward P/E has been as high as 10.22 and as low as 4.83, with a median of 7.23, all within the past year.

Investors will also notice that ACCO has a PEG ratio of 0.60. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ACCO's PEG compares to its industry's average PEG of 1.51. Over the past 52 weeks, ACCO's PEG has been as high as 1.02 and as low as 0.48, with a median of 0.72.

Value investors will likely look at more than just these metrics, but the above data helps show that Acco Brands is likely undervalued currently. And when considering the strength of its earnings outlook, ACCO sticks out at as one of the market's strongest value stocks.


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