Is Alstom (ALSMY) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Alstom (ALSMY). ALSMY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 10.20 right now. For comparison, its industry sports an average P/E of 20.24. ALSMY's Forward P/E has been as high as 72 and as low as 9.11, with a median of 24.23, all within the past year.
Investors will also notice that ALSMY has a PEG ratio of 2.37. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ALSMY's industry has an average PEG of 2.73 right now. ALSMY's PEG has been as high as 2.55 and as low as 2, with a median of 2.35, all within the past year.
These are just a handful of the figures considered in Alstom'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 ALSMY is an impressive value stock right now.
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Alstom ADR (ALSMY) : Free Stock Analysis Report
