Should Value Investors Buy Affiliated Managers Group (AMG) 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.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.Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.One company value investors might notice is Affiliated Managers Group (AMG). AMG is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.11, while its industry has an average P/E of 12.61. Over the past 52 weeks, AMG's Forward P/E has been as high as 9.17 and as low as 6.14, with a median of 7.88. Investors should also note that AMG holds a PEG ratio of 0.58. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AMG's PEG compares to its industry's average PEG of 0.93. Within the past year, AMG's PEG has been as high as 0.71 and as low as 0.50, with a median of 0.59. Another notable valuation metric for AMG is its P/B ratio of 1.67. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. AMG's current P/B looks attractive when compared to its industry's average P/B of 2.75. Over the past year, AMG's P/B has been as high as 1.68 and as low as 1.01, with a median of 1.30.Finally, we should also recognize that AMG has a P/CF ratio of 13.64. 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. AMG's current P/CF looks attractive when compared to its industry's average P/CF of 31.29. Over the past 52 weeks, AMG's P/CF has been as high as 13.72 and as low as 8.46, with a median of 11.07.These are only a few of the key metrics included in Affiliated Managers Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, AMG looks like an impressive value stock at the moment.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.See Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks