Yahoo Finance Are Investors Undervaluing ADT (ADT) 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.
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.
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 stock to keep an eye on is ADT (ADT). ADT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 9.61, which compares to its industry's average of 19.85. Over the past year, ADT's Forward P/E has been as high as 18.42 and as low as 7.76, with a median of 10.31.
Another valuation metric that we should highlight is ADT's P/B ratio of 1.78. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.56. Over the past year, ADT's P/B has been as high as 1.96 and as low as 1.49, with a median of 1.69.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ADT has a P/S ratio of 1.26. This compares to its industry's average P/S of 1.81.
If you're looking for another solid Security and Safety Services value stock, take a look at Lakeland Industries (LAKE). LAKE is a # 1 (Strong Buy) stock with a Value score of A.
Furthermore, Lakeland Industries holds a P/B ratio of 1.04 and its industry's price-to-book ratio is 3.56. LAKE's P/B has been as high as 1.13, as low as 0.67, with a median of 0.92 over the past 12 months.
These are just a handful of the figures considered in ADT and Lakeland Industries'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 ADT and LAKE is an impressive value stock right now.
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ADT Inc. (ADT) : Free Stock Analysis Report
Lakeland Industries, Inc. (LAKE) : Free Stock Analysis Report
