The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
North American Construction (NOA) is a stock many investors are watching right now. NOA is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 5.52, which compares to its industry's average of 9.67. NOA's Forward P/E has been as high as 8.78 and as low as 3.14, with a median of 6.59, all within the past year.
Finally, investors should note that NOA has a P/CF ratio of 2.15. 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. NOA's current P/CF looks attractive when compared to its industry's average P/CF of 4.51. Over the past year, NOA's P/CF has been as high as 4.94 and as low as 1.19, with a median of 2.22.
These figures are just a handful of the metrics value investors tend to look at, but they help show that North American Construction is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NOA feels like a great value stock at the moment.
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North American Construction Group Ltd. (NOA) : Free Stock Analysis Report
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