Is Adecco SA (AHEXY) Stock Undervalued Right Now?

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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Adecco SA (AHEXY) is a stock many investors are watching right now. AHEXY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 15.55, while its industry has an average P/E of 22.60. Over the past 52 weeks, AHEXY's Forward P/E has been as high as 85.96 and as low as 7.11, with a median of 18.95.

Another valuation metric that we should highlight is AHEXY's P/B ratio of 2.85. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 7.06. Over the past year, AHEXY's P/B has been as high as 3.04 and as low as 1.18, with a median of 2.33.

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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AHEXY has a P/S ratio of 0.46. This compares to its industry's average P/S of 1.01.

These are only a few of the key metrics included in Adecco SA'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, AHEXY looks like an impressive value stock at the moment.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Adecco SA (AHEXY) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research