Why This 1 Value Stock Could Be a Great Addition to Your Portfolio
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
Valmont Industries (VMI)
Headquartered in Omaha, NE, Valmont Industries, Inc. is primarily engaged in the production of fabricated metal products, metal and concrete pole and tower structures and mechanized irrigation systems in the United States and abroad.
VMI sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of A. Compared to the Steel - Pipe and Tube industry's P/E of 11.2X, shares of Valmont Industries are trading at a forward P/E of 15.6X. VMI also has a PEG Ratio of 1.3, a Price/Cash Flow ratio of 13.6X, and a Price/Sales ratio of 1.2X.
Many value investors pay close attention to a company's earnings as well. For VMI, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.00 to $15.70 per share for 2023. Per share VMI boasts an average earnings surprise of 3.9%.
VMI should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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Valmont Industries, Inc. (VMI) : Free Stock Analysis Report
