Yahoo Finance Is Affiliated Managers Group (AMG) a Great Value Stock Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Affiliated Managers Group (AMG). AMG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 7.01 right now. For comparison, its industry sports an average P/E of 14.84. Over the past 52 weeks, AMG's Forward P/E has been as high as 8.28 and as low as 6.20, with a median of 7.07.
We also note that AMG holds a PEG ratio of 0.54. 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. AMG's industry currently sports an average PEG of 0.86. Within the past year, AMG's PEG has been as high as 1.01 and as low as 0.53, with a median of 0.68.
We should also highlight that AMG has a P/B ratio of 1.15. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.04. Over the past 12 months, AMG's P/B has been as high as 1.34 and as low as 0.95, with a median of 1.15.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AMG has a P/S ratio of 2.51. This compares to its industry's average P/S of 2.58.
Finally, we should also recognize that AMG has a P/CF ratio of 9.01. 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. AMG's current P/CF looks attractive when compared to its industry's average P/CF of 17.77. Over the past year, AMG's P/CF has been as high as 9.54 and as low as 4, with a median of 4.84.
If you're looking for another solid Financial - Investment Management value stock, take a look at Federated Hermes (FHI). FHI is a # 2 (Buy) stock with a Value score of A.
Federated Hermes is trading at a forward earnings multiple of 8.46 at the moment, with a PEG ratio of 0.75. This compares to its industry's average P/E of 14.84 and average PEG ratio of 0.86.
Over the last 12 months, FHI's P/E has been as high as 12.62, as low as 8.46, with a median of 9.75, and its PEG ratio has been as high as 0.82, as low as 0.57, with a median of 0.67.
Additionally, Federated Hermes has a P/B ratio of 2.41 while its industry's price-to-book ratio sits at 3.04. For FHI, this valuation metric has been as high as 3.43, as low as 2.39, with a median of 2.66 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Affiliated Managers Group and Federated Hermes are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AMG and FHI feels like a great value stock at the moment.
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Affiliated Managers Group, Inc. (AMG) : Free Stock Analysis Report
Federated Hermes, Inc. (FHI) : Free Stock Analysis Report
