Are Investors Undervaluing Aviat Networks (AVNW) 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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Aviat Networks (AVNW) is a stock many investors are watching right now. AVNW is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 7.80 right now. For comparison, its industry sports an average P/E of 17.57. AVNW's Forward P/E has been as high as 11.66 and as low as 6.79, with a median of 8.80, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AVNW has a P/S ratio of 1.04. This compares to its industry's average P/S of 1.18.
Finally, investors will want to recognize that AVNW has a P/CF ratio of 14.88. 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 21.16. Over the past 52 weeks, AVNW's P/CF has been as high as 24.49 and as low as 12.43, with a median of 20.48.
If you're looking for another solid Wireless Equipment value stock, take a look at Viasat (VSAT). VSAT is a # 2 (Buy) stock with a Value score of A.
Shares of Viasat are currently trading at a forward earnings multiple of 17.61 and a PEG ratio of 1.12 compared to its industry's P/E and PEG ratios of 17.57 and 3.23, respectively.
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Aviat Networks, Inc. (AVNW) : Free Stock Analysis Report
Viasat Inc. (VSAT) : Free Stock Analysis Report
