Yahoo Finance Should Value Investors Buy North American Construction Group (NOA) Stock?
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 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.
North American Construction Group (NOA) is a stock many investors are watching right now. NOA is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 9.72, which compares to its industry's average of 13.97. Over the past year, NOA's Forward P/E has been as high as 10.49 and as low as 5.48, with a median of 7.45.
Investors should also recognize that NOA has a P/B ratio of 2.11. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.18. Within the past 52 weeks, NOA's P/B has been as high as 2.16 and as low as 1.24, with a median of 1.64.
Finally, we should also recognize that NOA has a P/CF ratio of 3.75. 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. This stock's P/CF looks attractive against its industry's average P/CF of 13.11. Over the past year, NOA's P/CF has been as high as 3.85 and as low as 2.20, with a median of 3.17.
These figures are just a handful of the metrics value investors tend to look at, but they help show that North American Construction Group 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
