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Is Armstrong Flooring (AFI) a Great Value Stock Right Now?

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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 Armstrong Flooring (AFI). AFI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Investors should also note that AFI holds a PEG ratio of 1.10. 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. AFI's industry currently sports an average PEG of 1.93. Within the past year, AFI's PEG has been as high as 1.78 and as low as 1.06, with a median of 1.41.

Finally, investors should note that AFI has a P/CF ratio of 8.86. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.75. Over the past year, AFI's P/CF has been as high as 12.11 and as low as 7.55, with a median of 9.92.

Value investors will likely look at more than just these metrics, but the above data helps show that Armstrong Flooring is likely undervalued currently. And when considering the strength of its earnings outlook, AFI 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.


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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