Yahoo Finance Should Value Investors Buy American Axle & Manufacturing Holdings (AXL) 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 American Axle & Manufacturing Holdings (AXL). AXL is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 11.97 right now. For comparison, its industry sports an average P/E of 14.24. Over the past 52 weeks, AXL's Forward P/E has been as high as 36.52 and as low as -50.32, with a median of 16.16.
Another notable valuation metric for AXL is its P/B ratio of 1.34. 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 1.77. Over the past 12 months, AXL's P/B has been as high as 1.73 and as low as 1.22, with a median of 1.40.
Value investors will likely look at more than just these metrics, but the above data helps show that American Axle & Manufacturing Holdings is likely undervalued currently. And when considering the strength of its earnings outlook, AXL sticks out at as one of the market's strongest value stocks.
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American Axle & Manufacturing Holdings, Inc. (AXL) : Free Stock Analysis Report
