雅虎香港財經 Should Value Investors Buy ADT (ADT) Stock?
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.
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 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 ADT (ADT). ADT is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.58 right now. For comparison, its industry sports an average P/E of 19.87. Over the last 12 months, ADT's Forward P/E has been as high as 18.42 and as low as 7.76, with a median of 10.31.
Investors should also recognize that ADT has a P/B ratio of 1.79. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. ADT's current P/B looks attractive when compared to its industry's average P/B of 3.75. Within the past 52 weeks, ADT's P/B has been as high as 1.96 and as low as 1.49, with a median of 1.70.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ADT has a P/S ratio of 1.27. This compares to its industry's average P/S of 1.83.
These are just a handful of the figures considered in ADT's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ADT is an impressive value stock right now.
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ADT Inc. (ADT) : Free Stock Analysis Report
