Is Affiliated Managers Group (AMG) a Great Value Stock Right Now?

Zacks Equity Research
·2 min read

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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

One stock to keep an eye on is Affiliated Managers Group (AMG). AMG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 9.28. This compares to its industry's average Forward P/E of 13.23. Over the past 52 weeks, AMG's Forward P/E has been as high as 10.13 and as low as 4.10, with a median of 6.13.

Finally, investors will want to recognize that AMG has a P/CF ratio of 20.27. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 36.66. Within the past 12 months, AMG's P/CF has been as high as 20.27 and as low as 7.40, with a median of 10.33.

These are just a handful of the figures considered in Affiliated Managers Group'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 AMG is an impressive value stock right now.


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