Should Value Investors Buy ASGN Inc (ASGN) Stock?
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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is ASGN Inc (ASGN). ASGN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 13.25, which compares to its industry's average of 21.44. ASGN's Forward P/E has been as high as 14.97 and as low as 10.49, with a median of 12.90, all within the past year.
ASGN is also sporting a PEG ratio of 1.44. 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. ASGN's industry currently sports an average PEG of 2.04. Within the past year, ASGN's PEG has been as high as 1.57 and as low as 0.94, with a median of 1.37.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ASGN has a P/S ratio of 0.92. This compares to its industry's average P/S of 1.13.
Finally, we should also recognize that ASGN has a P/CF ratio of 12.88. 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 33.75. Within the past 12 months, ASGN's P/CF has been as high as 14.12 and as low as 10.09, with a median of 12.42.
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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