Are You a Value Investor? This 1 Stock Could Be the Perfect Pick
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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
Ashland (ASH)
Covington, KY-based Ashland Global Holdings Inc. is a leading specialty chemicals company serving a vast range of consumer and industrial markets including automotive, construction, architectural coatings, adhesives, energy, food & beverage and pharmaceutical. The company has a diverse business portfolio with different value propositions, with respect to the markets served. Ashland has a controlling interest in leading consumer-branded lubricant supplier, Valvoline Inc.
ASH is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 18.7X for the current fiscal year compared to the Chemical - Specialty industry's P/E of 19X. Additionally, ASH has a PEG Ratio of 1 and a Price/Cash Flow ratio of 9.3X. Value investors should also note ASH's Price/Sales ratio of 2X.
Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.00 to $4.55 per share. ASH has an average earnings surprise of 27.4%.
ASH should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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Ashland Inc. (ASH) : Free Stock Analysis Report