Are Investors Undervaluing PlayAGS (AGS) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 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.
PlayAGS (AGS) is a stock many investors are watching right now. AGS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
We should also highlight that AGS has a P/B ratio of 4.33. The P/B ratio is used to compare a stock's market value with 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 10.11. Over the past year, AGS's P/B has been as high as 8.42 and as low as 3.34, with a median of 4.72.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. AGS has a P/S ratio of 0.77. This compares to its industry's average P/S of 1.54.
If you're looking for another solid Gaming value stock, take a look at Bragg Gaming Group Inc. (BRAG). BRAG is a # 2 (Buy) stock with a Value score of A.
Bragg Gaming Group Inc. also has a P/B ratio of 1.08 compared to its industry's price-to-book ratio of 10.11. Over the past year, its P/B ratio has been as high as 1.87, as low as 0.84, with a median of 1.10.
Value investors will likely look at more than just these metrics, but the above data helps show that PlayAGS and Bragg Gaming Group Inc. are likely undervalued currently. And when considering the strength of its earnings outlook, AGS and BRAG sticks out as one of the market's strongest value stocks.
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PlayAGS, Inc. (AGS) : Free Stock Analysis Report
Bragg Gaming Group Inc. (BRAG) : Free Stock Analysis Report
