Is Axalta Coating Systems (AXTA) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is Axalta Coating Systems (AXTA). AXTA 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 19.62 right now. For comparison, its industry sports an average P/E of 21.41. Over the past year, AXTA's Forward P/E has been as high as 20.92 and as low as 10.95, with a median of 15.64.
Investors will also notice that AXTA has a PEG ratio of 1.54. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AXTA's industry has an average PEG of 1.81 right now. Over the past 52 weeks, AXTA's PEG has been as high as 2.13 and as low as 0.66, with a median of 1.28.
Another great Chemical - Specialty stock you could consider is Element Solutions (ESI), which is a # 2 (Buy) stock with a Value Score of A.
Shares of Element Solutions currently holds a Forward P/E ratio of 13.25, and its PEG ratio is 1.68. In comparison, its industry sports average P/E and PEG ratios of 21.41 and 1.81.
Over the last 12 months, ESI's P/E has been as high as 15.29, as low as 9.56, with a median of 12.73, and its PEG ratio has been as high as 2.23, as low as 0.65, with a median of 1.13.
Furthermore, Element Solutions holds a P/B ratio of 1.96 and its industry's price-to-book ratio is 3.13. ESI's P/B has been as high as 2.24, as low as 1.66, with a median of 1.91 over the past 12 months.
These are only a few of the key metrics included in Axalta Coating Systems and Element Solutions strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, AXTA and ESI look like an impressive value stock at the moment.
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Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report
Element Solutions Inc. (ESI) : Free Stock Analysis Report
