Yahoo Finance Should Value Investors Buy AkzoNobel (AKZOY) Stock?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
AkzoNobel (AKZOY) is a stock many investors are watching right now. AKZOY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 14 right now. For comparison, its industry sports an average P/E of 16.02. Over the last 12 months, AKZOY's Forward P/E has been as high as 21.56 and as low as 12.29, with a median of 15.11.
AKZOY is also sporting a PEG ratio of 0.68. 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. AKZOY's PEG compares to its industry's average PEG of 1.11. Over the past 52 weeks, AKZOY's PEG has been as high as 0.89 and as low as 0.49, with a median of 0.69.
Value investors will likely look at more than just these metrics, but the above data helps show that AkzoNobel is likely undervalued currently. And when considering the strength of its earnings outlook, AKZOY sticks out at as one of the market's strongest value stocks.
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Akzo Nobel NV (AKZOY) : Free Stock Analysis Report
