Is ASGN Inc (ASGN) a Great Value Stock Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is ASGN Inc (ASGN). ASGN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 14.85, which compares to its industry's average of 28.37. Over the past 52 weeks, ASGN's Forward P/E has been as high as 18.19 and as low as 6.30, with a median of 13.86.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ASGN has a P/S ratio of 0.93. This compares to its industry's average P/S of 1.92.
Finally, investors will want to recognize that ASGN has a P/CF ratio of 13.44. 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. ASGN's current P/CF looks attractive when compared to its industry's average P/CF of 36.28. Over the past 52 weeks, ASGN's P/CF has been as high as 14.47 and as low as 6.11, with a median of 12.81.
These are only a few of the key metrics included in ASGN Inc's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ASGN looks like an impressive value stock at the moment.
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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.