Should Value Investors Buy AB SKF (SKFRY) Stock?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
AB SKF (SKFRY) is a stock many investors are watching right now. SKFRY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 13.84. This compares to its industry's average Forward P/E of 20.07. Over the past 52 weeks, SKFRY's Forward P/E has been as high as 15.86 and as low as 10.49, with a median of 12.20.
Finally, our model also underscores that SKFRY has a P/CF ratio of 8.81. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 18.78. SKFRY's P/CF has been as high as 11.33 and as low as 6.86, with a median of 9.03, all within the past year.
If you're looking for another solid Metal Products - Procurement and Fabrication value stock, take a look at TriMas (TRS). TRS is a # 2 (Buy) stock with a Value score of A.
Furthermore, TriMas holds a P/B ratio of 1.53 and its industry's price-to-book ratio is 9.05. TRS's P/B has been as high as 2.03, as low as 1.40, with a median of 1.65 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that AB SKF and TriMas are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SKFRY and TRS feels like a great value stock at the moment.
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AB SKF (SKFRY) : Free Stock Analysis Report
TriMas Corporation (TRS) : Free Stock Analysis Report
