Are Investors Undervaluing AAC Technologies (AACAY) Right Now?

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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

AAC Technologies (AACAY) is a stock many investors are watching right now. AACAY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 15.94, while its industry has an average P/E of 22.59. Over the last 12 months, AACAY's Forward P/E has been as high as 30.42 and as low as 9.13, with a median of 13.95.

Another valuation metric that we should highlight is AACAY's P/B ratio of 1.18. The P/B is a method of comparing a stock's market value to 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 3.31. Over the past year, AACAY's P/B has been as high as 1.33 and as low as 0.61, with a median of 0.87.

Value investors will likely look at more than just these metrics, but the above data helps show that AAC Technologies is likely undervalued currently. And when considering the strength of its earnings outlook, AACAY sticks out at as one of the market's strongest value stocks.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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