Should Value Investors Buy PlayAGS (AGS) 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 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.
One company value investors might notice is PlayAGS (AGS). AGS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
We should also highlight that AGS has a P/B ratio of 4.81. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 9.19. Over the past 12 months, AGS's P/B has been as high as 5.98 and as low as 3.23, with a median of 4.25.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. AGS has a P/S ratio of 0.9. This compares to its industry's average P/S of 1.22.
If you're looking for another solid Gaming value stock, take a look at MGM Resorts International (MGM). MGM is a # 2 (Buy) stock with a Value score of A.
Shares of MGM Resorts International currently holds a Forward P/E ratio of 13.83, and its PEG ratio is 8.41. In comparison, its industry sports average P/E and PEG ratios of 31.94 and 3.86.
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PlayAGS, Inc. (AGS) : Free Stock Analysis Report
MGM Resorts International (MGM) : Free Stock Analysis Report
