Are Investors Undervaluing Alps Electric (APELY) Right Now?
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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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Alps Electric (APELY). APELY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 14.52 right now. For comparison, its industry sports an average P/E of 22.55. Over the past year, APELY's Forward P/E has been as high as 23.19 and as low as 8.48, with a median of 12.39.
Another valuation metric that we should highlight is APELY's P/B ratio of 0.82. The P/B ratio is used to compare a stock's market value with 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 2.08. APELY's P/B has been as high as 0.87 and as low as 0.54, with a median of 0.68, over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Alps Electric is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, APELY feels like a great value stock at the moment.
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Alps Electric (APELY) : Free Stock Analysis Report