Is Bae Systems (BAESY) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Bae Systems (BAESY). BAESY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 16.34 right now. For comparison, its industry sports an average P/E of 20.76. Over the past 52 weeks, BAESY's Forward P/E has been as high as 17.49 and as low as 12.42, with a median of 14.24.
Investors will also notice that BAESY has a PEG ratio of 1.19. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BAESY's PEG compares to its industry's average PEG of 2.20. Over the last 12 months, BAESY's PEG has been as high as 2.55 and as low as 0.91, with a median of 1.24.
These are just a handful of the figures considered in Bae Systems'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 BAESY is an impressive value stock right now.
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Bae Systems PLC (BAESY) : Free Stock Analysis Report
