Is Ashtead Group PLC (ASHTY) a Great Value Stock Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 Ashtead Group PLC (ASHTY). ASHTY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 9.44, which compares to its industry's average of 14.42. Over the last 12 months, ASHTY's Forward P/E has been as high as 15.63 and as low as 8.28, with a median of 12.57.
Investors will also notice that ASHTY has a PEG ratio of 0.43. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ASHTY's PEG compares to its industry's average PEG of 0.96. Within the past year, ASHTY's PEG has been as high as 1.04 and as low as 0.43, with a median of 0.73.
Another valuation metric that we should highlight is ASHTY's P/B ratio of 3.27. 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 stock's P/B looks attractive against its industry's average P/B of 6.30. Within the past 52 weeks, ASHTY's P/B has been as high as 4.77 and as low as 2.71, with a median of 4.05.
Finally, we should also recognize that ASHTY has a P/CF ratio of 4.83. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 18.61. Over the past 52 weeks, ASHTY's P/CF has been as high as 10.88 and as low as 4, with a median of 6.56.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Ashtead Group PLC is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ASHTY feels like a great value stock at the moment.
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