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Is Artisan Partners Asset Management (APAM) Stock Undervalued Right Now?

·2 min read

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 company to watch right now is Artisan Partners Asset Management (APAM). APAM is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.24, which compares to its industry's average of 14.59. Over the last 12 months, APAM's Forward P/E has been as high as 14.71 and as low as 9.84, with a median of 11.66.

APAM is also sporting a PEG ratio of 0.42. 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. APAM's PEG compares to its industry's average PEG of 0.79. Over the past 52 weeks, APAM's PEG has been as high as 2.22 and as low as 0.40, with a median of 0.65.

Finally, investors should note that APAM has a P/CF ratio of 12.41. 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. APAM's current P/CF looks attractive when compared to its industry's average P/CF of 16.62. Within the past 12 months, APAM's P/CF has been as high as 15.75 and as low as 11.30, with a median of 13.41.

These are only a few of the key metrics included in Artisan Partners Asset Management's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, APAM looks like an impressive value stock at the moment.

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