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.
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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Avient (AVNT). AVNT is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 11.82 right now. For comparison, its industry sports an average P/E of 19.19. AVNT's Forward P/E has been as high as 18.10 and as low as 9.82, with a median of 13.35, all within the past year.
Investors should also note that AVNT holds a PEG ratio of 1.15. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AVNT's PEG compares to its industry's average PEG of 2.93. Within the past year, AVNT's PEG has been as high as 1.23 and as low as 0.80, with a median of 1.07.
We should also highlight that AVNT has a P/B ratio of 1.4. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. AVNT's current P/B looks attractive when compared to its industry's average P/B of 1.58. Over the past 12 months, AVNT's P/B has been as high as 2.04 and as low as 1.14, with a median of 1.54.
Finally, we should also recognize that AVNT has a P/CF ratio of 11.07. 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. This stock's P/CF looks attractive against its industry's average P/CF of 14.85. AVNT's P/CF has been as high as 15.80 and as low as 9.43, with a median of 11.33, all within the past year.
These are just a handful of the figures considered in Avient'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 AVNT is an impressive value stock right now.
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Avient Corporation (AVNT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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