Should Value Investors Buy Bae Systems (BAESY) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 to watch right now is Bae Systems (BAESY). BAESY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 16.02. This compares to its industry's average Forward P/E of 22.07. Over the past 52 weeks, BAESY's Forward P/E has been as high as 17.49 and as low as 12.42, with a median of 14.51.
Investors should also note that BAESY holds a PEG ratio of 1.17. 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. BAESY's PEG compares to its industry's average PEG of 2.31. Within the past year, BAESY's PEG has been as high as 2.15 and as low as 0.91, with a median of 1.19.
These are just a handful of the figures considered in Bae Systems's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BAESY is an impressive value stock right now.
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Bae Systems PLC (BAESY): Free Stock Analysis Report
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