Astec Industries (ASTE) is a Top-Ranked Value Stock: Should You Buy?

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores provide a rating system for stocks based on value, growth, and momentum characteristics, helping investors identify securities likely to outperform the market in the short term [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Style Score focuses on identifying undervalued stocks using metrics such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Style Score evaluates stocks based on projected and historical earnings, sales, and cash flow to identify those with sustainable growth potential [4] Momentum Score - The Momentum Style Score assesses stocks based on price trends and earnings estimate changes, indicating optimal times to invest in high-momentum stocks [5] VGM Score - The VGM Score combines the Value, Growth, and Momentum Scores to highlight stocks with the best overall characteristics, serving as a strong indicator alongside the Zacks Rank [6] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to assist investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [8] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with lower ranks, even with good Style Scores, may still face downward price pressure due to negative earnings outlooks [10] Company Spotlight: Astec Industries - Astec Industries, based in Chattanooga, TN, is a leading manufacturer of road building equipment, covering all phases from quarrying to asphalt application [11] - The company holds a Zacks Rank of 2 (Buy) and a VGM Score of B, indicating strong investment potential [11] - Astec Industries has a Value Style Score of B, with a forward P/E ratio of 14.76, and has seen an increase in earnings estimates for fiscal 2025 [12] - The Zacks Consensus Estimate for earnings has risen by $0.04 to $2.98 per share, with an average earnings surprise of +4.4% [12]