Should Value Investors Buy APi Group (APG) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
APi Group (APG) is a stock many investors are watching right now. APG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 16.71. This compares to its industry's average Forward P/E of 18.73. APG's Forward P/E has been as high as 17.71 and as low as 13.13, with a median of 15.16, all within the past year.
APG is also sporting a PEG ratio of 0.91. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. APG's industry has an average PEG of 1.37 right now. Within the past year, APG's PEG has been as high as 1.02 and as low as 0.64, with a median of 0.84.
Finally, investors will want to recognize that APG has a P/CF ratio of 17.69. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 23.75. APG's P/CF has been as high as 18.53 and as low as 13.07, with a median of 15.57, all within the past year.
If you're looking for another solid Business - Services value stock, take a look at Viad Corp (VVI). VVI is a # 1 (Strong Buy) stock with a Value score of A.
Viad Corp is trading at a forward earnings multiple of 20.52 at the moment, with a PEG ratio of 1.37. This compares to its industry's average P/E of 18.73 and average PEG ratio of 1.37.
Over the past year, VVI's P/E has been as high as 38.24, as low as -83.69, with a median of 26.67; its PEG ratio has been as high as 2.55, as low as -5.58, with a median of 0.84 during the same time period.
Viad Corp also has a P/B ratio of 4.75 compared to its industry's price-to-book ratio of 2.90. Over the past year, its P/B ratio has been as high as 7.25, as low as 3.40, with a median of 5.70.
These figures are just a handful of the metrics value investors tend to look at, but they help show that APi Group and Viad Corp are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, APG and VVI feels like a great value stock at the moment.
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APi Group Corporation (APG) : Free Stock Analysis Report
Viad Corp (VVI) : Free Stock Analysis Report
