Yahoo Finance Should Value Investors Buy ABM Industries (ABM) 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is ABM Industries (ABM). ABM is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 12.89, which compares to its industry's average of 34.83. Over the past 52 weeks, ABM's Forward P/E has been as high as 15.83 and as low as 10.26, with a median of 12.18.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ABM has a P/S ratio of 0.34. This compares to its industry's average P/S of 0.7.
If you're looking for another solid Building Products - Maintenance Service value stock, take a look at Limbach (LMB). LMB is a # 2 (Buy) stock with a Value score of A.
Shares of Limbach currently holds a Forward P/E ratio of 23.15, and its PEG ratio is 1.93. In comparison, its industry sports average P/E and PEG ratios of 34.83 and 2.68.
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ABM Industries Incorporated (ABM) : Free Stock Analysis Report
Limbach Holdings, Inc. (LMB) : Free Stock Analysis Report
