Should Value Investors Buy Adecco (AHEXY) Stock?

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.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.One stock to keep an eye on is Adecco (AHEXY). AHEXY is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 8.85, while its industry has an average P/E of 15.11. Over the past year, AHEXY's Forward P/E has been as high as 12.18 and as low as 6.87, with a median of 9.80. Investors will also notice that AHEXY has a PEG ratio of 0.98. 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. AHEXY's industry currently sports an average PEG of 1.63. Within the past year, AHEXY's PEG has been as high as 4.56 and as low as 0.73, with a median of 1.09.Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AHEXY has a P/S ratio of 0.19. This compares to its industry's average P/S of 0.54.Finally, investors should note that AHEXY has a P/CF ratio of 7.61. 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. AHEXY's P/CF compares to its industry's average P/CF of 18.63. AHEXY's P/CF has been as high as 9.89 and as low as 6.32, with a median of 8.24, all within the past year.These figures are just a handful of the metrics value investors tend to look at, but they help show that Adecco is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AHEXY feels like a great value stock at the moment.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant 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 Adecco SA (AHEXY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks