Should Value Investors Buy PGT Innovations (PGTI) 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.
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.
PGT Innovations (PGTI) is a stock many investors are watching right now. PGTI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Investors should also note that PGTI holds a PEG ratio of 1.20. 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. PGTI's industry has an average PEG of 1.34 right now. Over the last 12 months, PGTI's PEG has been as high as 1.20 and as low as 0.78, with a median of 0.89.
Finally, investors should note that PGTI has a P/CF ratio of 13.75. 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 20.25. Within the past 12 months, PGTI's P/CF has been as high as 13.77 and as low as 6.70, with a median of 9.57.
These figures are just a handful of the metrics value investors tend to look at, but they help show that PGT Innovations is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PGTI feels like a great value stock at the moment.
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PGT, Inc. (PGTI) : Free Stock Analysis Report
