Why Is Ashtead Gp Adr: (ASHTY) A Strong Buy Stock?

Ashtead (LON:AHT) Gp Adr (OTC:ASHTY) is an equipment company based in London, the United Kingdom. It has national networks in the U.S. and U.K., and rents out a full range of construction and industrial equipment to be used for different purposes. These rented tools can be used from anything ranging from generating power to ventilation, amongst many others. ASHTY operates two businesses: Sunbelt Rentals and A-Plant, which are the second largest rental equipment rental businesses in the U.S. and U.K. respectively.

Why You Should Watch This Company

ASHTY is one of the newest additions to the Zacks Rank #1 (Strong Buy) list, and while you may not have heard of the company, it actually is worth a closer look for many investors. This company has plenty of impressive metrics on multiple fronts, and could be a very intriguing pick. Let’s take a look at some of the key figures below.

Growth Metrics

ASHTY has some very solid growth prospects, as evidenced by its top and bottom line projections for the coming fiscal year. The company is projected to experience a growth of 11.36% in sales and 14.11% in earnings next fiscal year.

Although ASHTY’s current fiscal year is essentially over, the consensus estimate trend indicates an expectation that ASHTY will continue to grow by $5.22 per share. This is an increase from the $4.99 expectation of a month ago and $4.89 expectation of three months ago. The consistently increasing consensus bodes well for ASHTY’s future.

ASHTY also has a current quarter growth estimate of 26.2% and a projected year growth estimate of 21.5%. ASHTY has a bright future ahead of it, and is on track to grow faster than an average stock in its industry, as well as the S&P 500 at large too.

Value Metrics

ASHTY sits at a PEG ratio of 0.96 compared to the industry average of 1.26. A lower PEG ratio signifies that a stock price is low compared to the company’s expected earnings, as the projected EPS estimate also signifies. ASHTY’s comparatively lower PE ratio of 11.54 against the S&P’s 17.40 could be interpreted as a sign that it is currently undervalued. This coupled with the YTD price change of -14.8% paints right now as a very opportunistic time to consider ASHTY, which is why it currently has a Zacks Value Score of ‘A’.

Earnings Estimates

Beyond value, investors should also consider the earnings estimate revision history of the stock. This could signal that analysts also agree with the bullish story in ASHTY, and that bright prospects are ahead for the company.

As it stands, there is a 100% agreement in upward revisions for ASHTY both quarterly and yearly among analysts in our coverage universe.

Currently, ASHTY is a relatively newer publicly traded firm and it clearly has plenty of strong points, including a top VGM score of ‘A’. This could potentially make this a choice worth looking into for many investors out there, especially so if it can live up to growth expectations in the future.

Considering the stock just moved into Zacks Rank #1 (Strong Buy) territory, this could be a great time to give this little-known, but potentially solid, stock a closer inspection for a potential portfolio addition.