Are Investors Undervaluing PGT Innovations (PGTI) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is PGT Innovations (PGTI). PGTI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 12.86, while its industry has an average P/E of 13.21. Over the last 12 months, PGTI's Forward P/E has been as high as 14.34 and as low as 9.24, with a median of 12.39.
Investors should also note that PGTI holds a PEG ratio of 0.97. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PGTI's PEG compares to its industry's average PEG of 1.18. Over the past 52 weeks, PGTI's PEG has been as high as 1.03 and as low as 0.84, with a median of 0.90.
Another notable valuation metric for PGTI is its P/B ratio of 2.73. 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 company's current P/B looks solid when compared to its industry's average P/B of 3.88. PGTI's P/B has been as high as 2.88 and as low as 1.70, with a median of 2.41, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PGTI has a P/S ratio of 1.2. This compares to its industry's average P/S of 1.4.
Finally, investors will want to recognize that PGTI has a P/CF ratio of 10.73. 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. This stock's P/CF looks attractive against its industry's average P/CF of 16.88. Over the past 52 weeks, PGTI's P/CF has been as high as 11.31 and as low as 6.50, with a median of 9.
Value investors will likely look at more than just these metrics, but the above data helps show that PGT Innovations is likely undervalued currently. And when considering the strength of its earnings outlook, PGTI sticks out at as one of the market's strongest value stocks.
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PGT, Inc. (PGTI) : Free Stock Analysis Report
