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Are You a Value Investor? This 1 Stock Could Be the Perfect Pick

·2 min read

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.

Acuity Brands (AYI)

Headquartered in Atlanta, GA, Acuity Brands, Inc. is the parent company of Acuity Brands Lighting, Inc. (“ABL”) and other subsidiaries. The company manufactures and distributes lighting fixtures and related components that comprise devices such as luminaires, lighting controls, and controllers for various building systems, power supplies, prismatic skylights, and drivers, as well as integrated systems designed to optimize energy efficiency and comfort for various indoor and outdoor applications.

AYI sits at a Zacks Rank #2 (Buy), holds a Value Style Score of B, and has a VGM Score of B. Compared to the Building Products - Lighting industry's P/E of 12.2X, shares of Acuity Brands are trading at a forward P/E of 13X. AYI also has a PEG Ratio of 1.3, a Price/Cash Flow ratio of 12.8X, and a Price/Sales ratio of 1.4X.

Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2022. The Zacks Consensus Estimate has increased $0.05 to $12.28 per share. AYI has an average earnings surprise of 15.7%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding AYI to their portfolios.


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Zacks Investment Research