Subscribe to Entrepreneur for $5
Subscribe

Should Value Investors Buy Grupo Aval Acciones y Valores (AVAL) Stock?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to...

By
This story originally appeared on Zacks

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.

- Zacks

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.

One company value investors might notice is Grupo Aval Acciones y Valores (AVAL). AVAL is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 6.45. This compares to its industry's average Forward P/E of 14.14. Over the last 12 months, AVAL's Forward P/E has been as high as 11.84 and as low as 6.30, with a median of 8.07.

Finally, we should also recognize that AVAL has a P/CF ratio of 4.32. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. AVAL's current P/CF looks attractive when compared to its industry's average P/CF of 14.89. Over the past year, AVAL's P/CF has been as high as 9.13 and as low as 4.22, with a median of 5.36.

These are only a few of the key metrics included in Grupo Aval Acciones y Valores'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, AVAL looks like an impressive value stock at the moment.



Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. 

See 3 crypto-related stocks now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

 

Grupo Aval Acciones y Valores S.A. (AVAL): Free Stock Analysis Report

 

To read this article on Zacks.com click here.

 

Zacks Investment Research