Advertisement
Australia markets closed
  • ALL ORDS

    8,153.70
    +80.10 (+0.99%)
     
  • ASX 200

    7,896.90
    +77.30 (+0.99%)
     
  • AUD/USD

    0.6528
    +0.0010 (+0.15%)
     
  • OIL

    83.11
    -0.06 (-0.07%)
     
  • GOLD

    2,254.80
    +16.40 (+0.73%)
     
  • Bitcoin AUD

    107,412.66
    -1,974.71 (-1.81%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • AUD/EUR

    0.6044
    +0.0010 (+0.17%)
     
  • AUD/NZD

    1.0909
    +0.0007 (+0.06%)
     
  • NZX 50

    12,105.29
    +94.63 (+0.79%)
     
  • NASDAQ

    18,254.69
    -26.15 (-0.14%)
     
  • FTSE

    7,952.62
    +20.64 (+0.26%)
     
  • Dow Jones

    39,807.37
    +47.29 (+0.12%)
     
  • DAX

    18,492.49
    +15.40 (+0.08%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • NIKKEI 225

    40,369.44
    +201.37 (+0.50%)
     

Should Value Investors Buy Artisan Partners Asset Management (APAM) Stock?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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.

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.

One company to watch right now is Artisan Partners Asset Management (APAM). APAM is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 10.49, which compares to its industry's average of 15.03. Over the last 12 months, APAM's Forward P/E has been as high as 14.71 and as low as 9.85, with a median of 12.08.

ADVERTISEMENT

Investors will also notice that APAM has a PEG ratio of 0.43. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. APAM's industry has an average PEG of 0.83 right now. Within the past year, APAM's PEG has been as high as 2.22 and as low as 0.41, with a median of 0.70.

Finally, investors should note that APAM has a P/CF ratio of 12.62. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. APAM's current P/CF looks attractive when compared to its industry's average P/CF of 16.45. Over the past 52 weeks, APAM's P/CF has been as high as 15.75 and as low as 11.01, with a median of 13.41.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Artisan Partners Asset Management is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, APAM feels like a great 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
 
Artisan Partners Asset Management Inc. (APAM) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.