Is PGT Innovations (PGTI) Stock Undervalued 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company value investors might notice is PGT Innovations (PGTI). PGTI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 13.45, which compares to its industry's average of 13.49. Over the past year, PGTI's Forward P/E has been as high as 14.34 and as low as 9.24, with a median of 12.18.
Investors should also note that PGTI holds a PEG ratio of 1.01. 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. PGTI's PEG compares to its industry's average PEG of 1.07. Within the past year, PGTI's PEG has been as high as 1.03 and as low as 0.84, with a median of 0.88.
We should also highlight that PGTI has a P/B ratio of 2.83. 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 3.97. PGTI's P/B has been as high as 2.88 and as low as 1.70, with a median of 2.36, 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. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. PGTI has a P/S ratio of 1.24. This compares to its industry's average P/S of 1.41.
Finally, our model also underscores that PGTI has a P/CF ratio of 11.14. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 17.22. Within the past 12 months, PGTI's P/CF has been as high as 11.31 and as low as 6.50, with a median of 8.82.
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
