Yahoo Finance Is American Vanguard (AVD) a Great Value Stock Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.
One company value investors might notice is American Vanguard (AVD). AVD is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 14.53, which compares to its industry's average of 22.89. Over the past 52 weeks, AVD's Forward P/E has been as high as 37.83 and as low as 7.12, with a median of 14.96.
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. AVD has a P/S ratio of 0.57. This compares to its industry's average P/S of 1.68.
Another great Chemical - Specialty stock you could consider is DAQO New Energy (DQ), which is a # 1 (Strong Buy) stock with a Value Score of A.
Additionally, DAQO New Energy has a P/B ratio of 0.24 while its industry's price-to-book ratio sits at 5. For DQ, this valuation metric has been as high as 0.51, as low as 0.21, with a median of 0.33 over the past year.
These are only a few of the key metrics included in American Vanguard and DAQO New Energy strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, AVD and DQ look like an impressive value stock at the moment.
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American Vanguard Corporation (AVD) : Free Stock Analysis Report
DAQO New Energy Corp. (DQ) : Free Stock Analysis Report
