Should Value Investors Buy American Public Education (APEI) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One company value investors might notice is American Public Education (APEI). APEI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 20.92. This compares to its industry's average Forward P/E of 22.75. Over the last 12 months, APEI's Forward P/E has been as high as 4,091.70 and as low as -731.64, with a median of -6.11.
Investors will also notice that APEI has a PEG ratio of 1.39. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. APEI's industry currently sports an average PEG of 1.45. Within the past year, APEI's PEG has been as high as 272.78 and as low as -48.78, with a median of -0.41.
Perdoceo Education (PRDO) may be another strong Schools stock to add to your shortlist. PRDO is a # 1 (Strong Buy) stock with a Value grade of A.
Shares of Perdoceo Education are currently trading at a forward earnings multiple of 8.07 and a PEG ratio of 0.54 compared to its industry's P/E and PEG ratios of 22.75 and 1.45, respectively.
PRDO's price-to-earnings ratio has been as high as 11 and as low as 6.46, with a median of 8.31, while its PEG ratio has been as high as 0.73 and as low as 0.43, with a median of 0.55, all within the past year.
Additionally, Perdoceo Education has a P/B ratio of 1.34 while its industry's price-to-book ratio sits at 3.28. For PRDO, this valuation metric has been as high as 1.50, as low as 1.03, with a median of 1.33 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that American Public Education and Perdoceo Education are likely undervalued currently. And when considering the strength of its earnings outlook, APEI and PRDO sticks out as one of the market's strongest value stocks.
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American Public Education, Inc. (APEI) : Free Stock Analysis Report
Perdoceo Education Corporation (PRDO) : Free Stock Analysis Report
