Is American Woodmark (AMWD) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company to watch right now is American Woodmark (AMWD). AMWD is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 10.48. This compares to its industry's average Forward P/E of 12.75. Over the past year, AMWD's Forward P/E has been as high as 11.88 and as low as 7.21, with a median of 9.77.
Another valuation metric that we should highlight is AMWD's P/B ratio of 1.45. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. AMWD's current P/B looks attractive when compared to its industry's average P/B of 3.15. AMWD's P/B has been as high as 1.47 and as low as 0.88, with a median of 1.09, over the past year.
Finally, we should also recognize that AMWD has a P/CF ratio of 6.37. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. AMWD's current P/CF looks attractive when compared to its industry's average P/CF of 9.10. AMWD's P/CF has been as high as 9.12 and as low as 4.36, with a median of 6.18, all within the past year.
These are just a handful of the figures considered in American Woodmark'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 AMWD is an impressive value stock right now.
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American Woodmark Corporation (AMWD) : Free Stock Analysis Report
