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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
American Public Education (APEI) is a stock many investors are watching right now. APEI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 29.18. This compares to its industry's average Forward P/E of 30.62. APEI's Forward P/E has been as high as 40.99 and as low as 17.17, with a median of 24.17, all within the past year.
Finally, our model also underscores that APEI has a P/CF ratio of 14.18. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. APEI's current P/CF looks attractive when compared to its industry's average P/CF of 35.72. APEI's P/CF has been as high as 16.52 and as low as 8.92, with a median of 11.98, all within the past year.
These are only a few of the key metrics included in American Public Education's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, APEI looks like an impressive value stock at the moment.
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American Public Education, Inc. (APEI) : Free Stock Analysis Report
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