Are Investors Undervaluing AZZ (AZZ) 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.
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.
AZZ (AZZ) is a stock many investors are watching right now. AZZ is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 10.43. This compares to its industry's average Forward P/E of 19.60. Over the past 52 weeks, AZZ's Forward P/E has been as high as 12.17 and as low as 6.81, with a median of 10.66.
We should also highlight that AZZ has a P/B ratio of 1.25. The P/B ratio pits a stock's market value against 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 2.69. Over the past year, AZZ's P/B has been as high as 1.43 and as low as 1, with a median of 1.19.
These figures are just a handful of the metrics value investors tend to look at, but they help show that AZZ is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AZZ feels like a great value stock at the moment.
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AZZ Inc. (AZZ) : Free Stock Analysis Report
