Markets

Is Anixter International (AXE) a Great Value Stock 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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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 to watch right now is Anixter International (AXE). AXE is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.59 right now. For comparison, its industry sports an average P/E of 9.60. AXE's Forward P/E has been as high as 10.86 and as low as 7.82, with a median of 9.33, all within the past year.

We also note that AXE holds a PEG ratio of 1.20. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AXE's PEG compares to its industry's average PEG of 1.37. Within the past year, AXE's PEG has been as high as 1.36 and as low as 0.98, with a median of 1.17.

Finally, investors will want to recognize that AXE has a P/CF ratio of 8.84. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. AXE's current P/CF looks attractive when compared to its industry's average P/CF of 12.60. Over the past year, AXE's P/CF has been as high as 12.63 and as low as 7.14, with a median of 8.65.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Anixter International is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AXE feels like a great value stock at the moment.


Click to get this free report

Anixter International Inc. (AXE): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More