Are Investors Undervaluing Aegion (AEGN) Right Now?
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is Aegion (AEGN). AEGN is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 15.36, while its industry has an average P/E of 18.25. Over the last 12 months, AEGN's Forward P/E has been as high as 20.58 and as low as 9.75, with a median of 15.39.
We also note that AEGN holds a PEG ratio of 1.57. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AEGN's PEG compares to its industry's average PEG of 1.59. AEGN's PEG has been as high as 1.62 and as low as 1.45, with a median of 1.55, all within the past year.
Finally, our model also underscores that AEGN has a P/CF ratio of 14.85. 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. AEGN's P/CF compares to its industry's average P/CF of 16.63. Over the past year, AEGN's P/CF has been as high as 47.28 and as low as 14.18, with a median of 25.92.
Value investors will likely look at more than just these metrics, but the above data helps show that Aegion is likely undervalued currently. And when considering the strength of its earnings outlook, AEGN sticks out at as one of the market's strongest value stocks.
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