Is AdvanSix (ASIX) a Great Value Stock Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
AdvanSix (ASIX) is a stock many investors are watching right now. ASIX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 4.39, while its industry has an average P/E of 12.02. Over the last 12 months, ASIX's Forward P/E has been as high as 10.95 and as low as 4.10, with a median of 8.49.
Another notable valuation metric for ASIX is its P/B ratio of 1.43. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.45. Within the past 52 weeks, ASIX's P/B has been as high as 2.66 and as low as 1.34, with a median of 2.01.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ASIX has a P/S ratio of 0.53. This compares to its industry's average P/S of 1.46.
Finally, investors should note that ASIX has a P/CF ratio of 4.07. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.82. Over the past 52 weeks, ASIX's P/CF has been as high as 8.12 and as low as 3.82, with a median of 6.14.
Investors could also keep in mind DAQO New Energy (DQ), an Chemical - Specialty stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Furthermore, DAQO New Energy holds a P/B ratio of 1.54 and its industry's price-to-book ratio is 3.45. DQ's P/B has been as high as 5.10, as low as 0.84, with a median of 1.37 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that AdvanSix and DAQO New Energy are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ASIX and DQ feels like a great value stock at the moment.
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