Should Value Investors Buy APi Group (APG) 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 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.
One stock to keep an eye on is APi Group (APG). APG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 19.24, which compares to its industry's average of 29.44. APG's Forward P/E has been as high as 19.24 and as low as 13.13, with a median of 15.54, all within the past year.
Investors will also notice that APG has a PEG ratio of 1.15. 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 PEG compares to its industry's average PEG of 2.23. APG's PEG has been as high as 1.15 and as low as 0.66, with a median of 0.86, all within the past year.
Finally, investors will want to recognize that APG has a P/CF ratio of 20.64. 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 25.38. Over the past year, APG's P/CF has been as high as 20.64 and as low as 13.07, with a median of 16.11.
Another great Business - Services stock you could consider is Viad Corp (VVI), which is a # 2 (Buy) stock with a Value Score of A.
Shares of Viad Corp currently holds a Forward P/E ratio of 21.93, and its PEG ratio is 1.46. In comparison, its industry sports average P/E and PEG ratios of 29.44 and 2.23.
Over the last 12 months, VVI's P/E has been as high as 38.24, as low as -83.69, with a median of 26.67, and its PEG ratio has been as high as 2.55, as low as -5.58, with a median of 1.78.
Additionally, Viad Corp has a P/B ratio of 5.41 while its industry's price-to-book ratio sits at 3.41. For VVI, this valuation metric has been as high as 7.22, as low as 3.40, with a median of 5.53 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that APi Group and Viad Corp are likely undervalued currently. And when considering the strength of its earnings outlook, APG and VVI sticks out as one of the market's strongest value stocks.
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APi Group Corporation (APG) : Free Stock Analysis Report
Viad Corp (VVI) : Free Stock Analysis Report
