Yahoo Finance Should Value Investors Buy Axos Financial (AX) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company value investors might notice is Axos Financial (AX). AX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 7.25. This compares to its industry's average Forward P/E of 10.91. Over the last 12 months, AX's Forward P/E has been as high as 11.28 and as low as 6.61, with a median of 8.41.
Investors should also recognize that AX has a P/B ratio of 1.28. The P/B is a method of comparing a stock's market value to 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 3.34. Over the past year, AX's P/B has been as high as 1.90 and as low as 1.14, with a median of 1.40.
Finally, we should also recognize that AX has a P/CF ratio of 8.04. 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. AX's current P/CF looks attractive when compared to its industry's average P/CF of 18.12. AX's P/CF has been as high as 11.47 and as low as 7.18, with a median of 8.82, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Axos Financial is likely undervalued currently. And when considering the strength of its earnings outlook, AX sticks out at as one of the market's strongest value stocks.
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AXOS FINANCIAL, INC (AX) : Free Stock Analysis Report
