Yahoo Finance Should Value Investors Buy Quanex Building Products (NX) 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Quanex Building Products (NX) is a stock many investors are watching right now. NX is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 11.12 right now. For comparison, its industry sports an average P/E of 16.28. Over the past 52 weeks, NX's Forward P/E has been as high as 15.27 and as low as 11.12, with a median of 12.86.
Investors should also note that NX holds a PEG ratio of 0.79. 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. NX's industry has an average PEG of 1.58 right now. NX's PEG has been as high as 1.99 and as low as 0.79, with a median of 1.08, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. NX has a P/S ratio of 0.95. This compares to its industry's average P/S of 1.6.
Finally, investors will want to recognize that NX has a P/CF ratio of 7.73. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 25.76. NX's P/CF has been as high as 9.84 and as low as 6.87, with a median of 8.02, all within the past year.
These are just a handful of the figures considered in Quanex Building Products'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 NX is an impressive value stock right now.
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Quanex Building Products Corporation (NX) : Free Stock Analysis Report
