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Is Fluor (FLR) Stock Undervalued Right Now?

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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 to watch right now is Fluor (FLR). FLR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.76, while its industry has an average P/E of 15.37. Over the past year, FLR’s Forward P/E has been as high as 4,738.13 and as low as -1,276.28, with a median of 12.45.


FLR is also sporting a PEG ratio of 0.71. 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. FLR’s industry currently sports an average PEG of 1.14. Over the last 12 months, FLR’s PEG has been as high as 1.23 and as low as 0.71, with a median of 1.16.

Investors should also recognize that FLR has a P/B ratio of 1.08. 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 stock’s P/B looks solid versus its industry’s average P/B of 1.89. Within the past 52 weeks, FLR’s P/B has been as high as 1.87 and as low as 0.28, with a median of 1.23.

These are just a handful of the figures considered in Fluor’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 FLR is an impressive value stock right now.


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