Are Investors Undervaluing PlayAGS (AGS) 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, 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.
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.
PlayAGS (AGS) is a stock many investors are watching right now. AGS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Another valuation metric that we should highlight is AGS's P/B ratio of 4.98. 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 8.32. Over the past 12 months, AGS's P/B has been as high as 8.42 and as low as 3.74, with a median of 5.18.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AGS has a P/S ratio of 0.75. This compares to its industry's average P/S of 1.5.
Investors could also keep in mind Boyd Gaming (BYD), an Gaming stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Boyd Gaming is currently trading with a Forward P/E ratio of 11.08 while its PEG ratio sits at 3.84. Both of the company's metrics compare favorably to its industry's average P/E of 73.92 and average PEG ratio of 4.23.
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PlayAGS, Inc. (AGS) : Free Stock Analysis Report
Boyd Gaming Corporation (BYD) : Free Stock Analysis Report
