Is American Woodmark (AMWD) 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company to watch right now is American Woodmark (AMWD). AMWD is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 11.12, which compares to its industry's average of 14.15. AMWD's Forward P/E has been as high as 11.88 and as low as 7.20, with a median of 9.34, all within the past year.
We should also highlight that AMWD has a P/B ratio of 1.42. The P/B ratio is used to compare a stock's market value with 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 3.01. Over the past year, AMWD's P/B has been as high as 1.45 and as low as 0.88, with a median of 1.04.
Finally, investors should note that AMWD has a P/CF ratio of 6.61. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. AMWD's P/CF compares to its industry's average P/CF of 8.45. Over the past 52 weeks, AMWD's P/CF has been as high as 12.31 and as low as 4.36, with a median of 7.57.
Virco Manufacturing (VIRC) may be another strong Furniture stock to add to your shortlist. VIRC is a # 2 (Buy) stock with a Value grade of A.
Virco Manufacturing sports a P/B ratio of 0.98 as well; this compares to its industry's price-to-book ratio of 3.01. In the past 52 weeks, VIRC's P/B has been as high as 1.59, as low as 0.87, with a median of 1.08.
These are just a handful of the figures considered in American Woodmark and Virco Manufacturing'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 and VIRC is an impressive value stock right now.
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American Woodmark Corporation (AMWD) : Free Stock Analysis Report
Virco Manufacturing Corporation (VIRC) : Free Stock Analysis Report
