Should Value Investors Buy American Outdoor Brands (AOBC) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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.
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.
American Outdoor Brands (AOBC) is a stock many investors are watching right now. AOBC is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AOBC has a P/S ratio of 0.84. This compares to its industry's average P/S of 1.3.
Finally, our model also underscores that AOBC has a P/CF ratio of 7.45. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 28.70. AOBC's P/CF has been as high as 8.88 and as low as 4.14, with a median of 6.36, all within the past year.
These are only a few of the key metrics included in American Outdoor Brands's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, AOBC looks like an impressive value stock at the moment.
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American Outdoor Brands Corporation (AOBC) : Free Stock Analysis Report
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