Is American Woodmark (AMWD) Stock Undervalued 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, 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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is American Woodmark (AMWD). AMWD is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 8.56, while its industry has an average P/E of 11.96. Over the last 12 months, AMWD's Forward P/E has been as high as 11.88 and as low as 7.28, with a median of 9.77.
Another valuation metric that we should highlight is AMWD's P/B ratio of 1.26. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.98. AMWD's P/B has been as high as 1.47 and as low as 0.88, with a median of 1.13, over the past year.
Finally, our model also underscores that AMWD has a P/CF ratio of 5.55. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. AMWD's P/CF compares to its industry's average P/CF of 8.43. Over the past 52 weeks, AMWD's P/CF has been as high as 8.55 and as low as 4.36, with a median of 6.08.
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
