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Are Investors Undervaluing AVX (AVX) Right Now?

Zacks Equity Research
Texas Capital (TCBI) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

AVX (AVX) is a stock many investors are watching right now. AVX 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 11.85, while its industry has an average P/E of 15.74. Over the last 12 months, AVX's Forward P/E has been as high as 27.68 and as low as 10.64, with a median of 21.28.

We should also highlight that AVX has a P/B ratio of 1.26. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. AVX's current P/B looks attractive when compared to its industry's average P/B of 2.47. Within the past 52 weeks, AVX's P/B has been as high as 1.59 and as low as 1.10, with a median of 1.32.

These are just a handful of the figures considered in AVX's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that AVX is an impressive value stock right now.


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