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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One company value investors might notice is Accel Entertainment (ACEL). ACEL is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 14.22, which compares to its industry’s average of 23.20. Over the last 12 months, ACEL’s Forward P/E has been as high as 17.76 and as low as 11.88, with a median of 14.32.
We should also highlight that ACEL has a P/B ratio of 3.59. The P/B ratio pits a stock’s market value against its book value, which is defined as total assets minus total liabilities. ACEL’s current P/B looks attractive when compared to its industry’s average P/B of 8.87. ACEL’s P/B has been as high as 4.92 and as low as 3.14, with a median of 3.81, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock’s price with the company’s sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ACEL has a P/S ratio of 0.72. This compares to its industry’s average P/S of 1.26.
Finally, investors will want to recognize that ACEL has a P/CF ratio of 8.80. This figure highlights a company’s operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. ACEL’s current P/CF looks attractive when compared to its industry’s average P/CF of 23.60. Over the past year, ACEL’s P/CF has been as high as 11.23 and as low as 7.35, with a median of 8.96.
These are just a handful of the figures considered in Accel Entertainment’s great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ACEL is an impressive value stock right now.
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source finance.yahoo.com ’
