Should Value Investors Buy AB SKF (SKFRY) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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.
AB SKF (SKFRY) is a stock many investors are watching right now. SKFRY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 10.84. This compares to its industry's average Forward P/E of 24.17. SKFRY's Forward P/E has been as high as 15.60 and as low as 10.32, with a median of 12.84, all within the past year.
Finally, our model also underscores that SKFRY has a P/CF ratio of 8.70. 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. SKFRY's current P/CF looks attractive when compared to its industry's average P/CF of 29.22. Over the past 52 weeks, SKFRY's P/CF has been as high as 10.33 and as low as 6.86, with a median of 9.04.
These are just a handful of the figures considered in AB SKF'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 SKFRY is an impressive value stock right now.
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