Should Value Investors Buy Associated British Foods (ASBFY) 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Associated British Foods (ASBFY). ASBFY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 12.67. This compares to its industry's average Forward P/E of 15.61. Over the past 52 weeks, ASBFY's Forward P/E has been as high as 14.53 and as low as 10.72, with a median of 13.23.
Another valuation metric that we should highlight is ASBFY's P/B ratio of 1.74. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.07. ASBFY's P/B has been as high as 1.91 and as low as 1.32, with a median of 1.60, over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Associated British Foods is likely undervalued currently. And when considering the strength of its earnings outlook, ASBFY sticks out at as one of the market's strongest value stocks.
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Associated British Foods PLC (ASBFY) : Free Stock Analysis Report