Is NN Group (NNGRY) Stock Undervalued 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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One stock to keep an eye on is NN Group (NNGRY). NNGRY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 4.42. This compares to its industry's average Forward P/E of 6.38. Over the past 52 weeks, NNGRY's Forward P/E has been as high as 9.39 and as low as 4.42, with a median of 8.16.
We also note that NNGRY holds a PEG ratio of 0.34. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NNGRY's industry has an average PEG of 0.61 right now. Over the past 52 weeks, NNGRY's PEG has been as high as 5.13 and as low as 0.22, with a median of 3.96.
Value investors will likely look at more than just these metrics, but the above data helps show that NN Group is likely undervalued currently. And when considering the strength of its earnings outlook, NNGRY sticks out at as one of the market's strongest value stocks.
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NN Group NV Unsponsored ADR (NNGRY) : Free Stock Analysis Report
