Are Investors Undervaluing North American Construction Group (NOA) 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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 to watch right now is North American Construction Group (NOA). NOA is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 7.28, which compares to its industry's average of 16.31. Over the last 12 months, NOA's Forward P/E has been as high as 13.19 and as low as 6.23, with a median of 9.35.
Finally, investors will want to recognize that NOA has a P/CF ratio of 4.60. 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 13.35. Over the past year, NOA's P/CF has been as high as 4.81 and as low as 2.88, with a median of 3.75.
These figures are just a handful of the metrics value investors tend to look at, but they help show that North American Construction Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NOA feels like a great value stock at the moment.
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North American Construction Group Ltd. (NOA) : Free Stock Analysis Report
