Are Investors Undervaluing American Public Education (APEI) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is American Public Education (APEI). APEI is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 18.24, which compares to its industry's average of 21.85. Over the past year, APEI's Forward P/E has been as high as 4,091.70 and as low as -731.64, with a median of -6.11.
Investors should also note that APEI holds a PEG ratio of 1.22. 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. APEI's PEG compares to its industry's average PEG of 1.39. APEI's PEG has been as high as 272.78 and as low as -48.78, with a median of -0.41, all within the past year.
Another great Schools stock you could consider is Adtalem Global Education (ATGE), which is a # 1 (Strong Buy) stock with a Value Score of A.
Shares of Adtalem Global Education currently holds a Forward P/E ratio of 10.97, and its PEG ratio is 0.73. In comparison, its industry sports average P/E and PEG ratios of 21.85 and 1.39.
ATGE's price-to-earnings ratio has been as high as 13.56 and as low as 7.90, with a median of 9.74, while its PEG ratio has been as high as 0.90 and as low as 0.53, with a median of 0.65, all within the past year.
Adtalem Global Education also has a P/B ratio of 1.46 compared to its industry's price-to-book ratio of 3.45. Over the past year, its P/B ratio has been as high as 1.80, as low as 0.98, with a median of 1.26.
These are only a few of the key metrics included in American Public Education and Adtalem Global Education strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, APEI and ATGE look like an impressive value stock at the moment.
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American Public Education, Inc. (APEI) : Free Stock Analysis Report
Adtalem Global Education Inc. (ATGE) : Free Stock Analysis Report
