Are Investors Undervaluing APi Group (APG) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is APi Group (APG). APG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 17.46, while its industry has an average P/E of 25.29. Over the past year, APG's Forward P/E has been as high as 17.71 and as low as 13.13, with a median of 15.30.
Investors should also note that APG holds a PEG ratio of 0.96. 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. APG's PEG compares to its industry's average PEG of 1.89. Within the past year, APG's PEG has been as high as 1.02 and as low as 0.64, with a median of 0.84.
Finally, investors will want to recognize that APG has a P/CF ratio of 18.62. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 25.27. Over the past 52 weeks, APG's P/CF has been as high as 18.62 and as low as 13.07, with a median of 15.75.
Another great Business - Services stock you could consider is Viad Corp (VVI), which is a # 2 (Buy) stock with a Value Score of A.
Shares of Viad Corp currently holds a Forward P/E ratio of 20.94, and its PEG ratio is 1.40. In comparison, its industry sports average P/E and PEG ratios of 25.29 and 1.89.
Over the past year, VVI's P/E has been as high as 38.24, as low as -83.69, with a median of 26.67; its PEG ratio has been as high as 2.55, as low as -5.58, with a median of 0.84 during the same time period.
Viad Corp sports a P/B ratio of 5.01 as well; this compares to its industry's price-to-book ratio of 3.07. In the past 52 weeks, VVI's P/B has been as high as 7.22, as low as 3.40, with a median of 5.63.
These figures are just a handful of the metrics value investors tend to look at, but they help show that APi Group and Viad Corp are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, APG and VVI feels like a great value stock at the moment.
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APi Group Corporation (APG) : Free Stock Analysis Report
Viad Corp (VVI) : Free Stock Analysis Report
