Yahoo Finance Should Value Investors Buy Mayville Engineering (MEC) 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.
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.
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.
Mayville Engineering (MEC) is a stock many investors are watching right now. MEC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 19.38, which compares to its industry's average of 23.76. Over the past 52 weeks, MEC's Forward P/E has been as high as 33.93 and as low as 12.83, with a median of 15.66.
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. MEC has a P/S ratio of 0.54. This compares to its industry's average P/S of 1.14.
Finally, investors will want to recognize that MEC has a P/CF ratio of 7.48. 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. MEC's P/CF compares to its industry's average P/CF of 27.44. Within the past 12 months, MEC's P/CF has been as high as 7.48 and as low as 4.57, with a median of 6.04.
These are just a handful of the figures considered in Mayville Engineering'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 MEC is an impressive value stock right now.
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Mayville Engineering Company, Inc. (MEC) : Free Stock Analysis Report
