Are Investors Undervaluing Axos Financial (AX) Right Now?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Axos Financial (AX) is a stock many investors are watching right now. AX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 7.32, which compares to its industry's average of 10.90. AX's Forward P/E has been as high as 11.56 and as low as 7.26, with a median of 8.63, all within the past year.
Another valuation metric that we should highlight is AX's P/B ratio of 1.26. Investors use the P/B ratio to look at a stock's market value versus 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 2.99. Over the past year, AX's P/B has been as high as 1.94 and as low as 1.21, with a median of 1.42.
These are just a handful of the figures considered in Axos Financial'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 AX is an impressive value stock right now.
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AXOS FINANCIAL, INC (AX) : Free Stock Analysis Report
