Are Investors Undervaluing Avient (AVNT) 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Avient (AVNT). AVNT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 12.46, while its industry has an average P/E of 13.09. Over the last 12 months, AVNT's Forward P/E has been as high as 17.79 and as low as 9.08, with a median of 14.60.
AVNT is also sporting a PEG ratio of 1.21. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AVNT's PEG compares to its industry's average PEG of 1.62. Within the past year, AVNT's PEG has been as high as 1.61 and as low as 0.61, with a median of 1.23.
Another valuation metric that we should highlight is AVNT's P/B ratio of 1.37. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.02. Over the past 12 months, AVNT's P/B has been as high as 1.87 and as low as 1.30, with a median of 1.54.
Finally, investors will want to recognize that AVNT has a P/CF ratio of 4.07. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. AVNT's current P/CF looks attractive when compared to its industry's average P/CF of 8.51. Over the past 52 weeks, AVNT's P/CF has been as high as 9.50 and as low as 3.41, with a median of 4.35.
Olin (OLN) may be another strong Chemical - Diversified stock to add to your shortlist. OLN is a # 2 (Buy) stock with a Value grade of A.
Shares of Olin are currently trading at a forward earnings multiple of 9.19 and a PEG ratio of 1.29 compared to its industry's P/E and PEG ratios of 13.09 and 1.62, respectively.
OLN's Forward P/E has been as high as 11.13 and as low as 5.20, with a median of 8.88. During the same time period, its PEG ratio has been as high as 4.83, as low as 0.73, with a median of 1.25.
Olin also has a P/B ratio of 2.54 compared to its industry's price-to-book ratio of 2.02. Over the past year, its P/B ratio has been as high as 3.48, as low as 2.27, with a median of 2.84.
Value investors will likely look at more than just these metrics, but the above data helps show that Avient and Olin are likely undervalued currently. And when considering the strength of its earnings outlook, AVNT and OLN sticks out as one of the market's strongest value stocks.
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Avient Corporation (AVNT) : Free Stock Analysis Report
Olin Corporation (OLN) : Free Stock Analysis Report
