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Should Value Investors Buy AMark Precious Metals (AMRK) Stock?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is AMark Precious Metals (AMRK - Free Report) . AMRK is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 5.08, which compares to its industry's average of 5.33. AMRK's Forward P/E has been as high as 12.41 and as low as 3.72, with a median of 7.04, all within the past year.

Investors should also recognize that AMRK has a P/B ratio of 1.62. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.70. AMRK's P/B has been as high as 2.33 and as low as 1.13, with a median of 1.65, over the past year.

Finally, investors should note that AMRK has a P/CF ratio of 4.90. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. AMRK's P/CF compares to its industry's average P/CF of 6.26. Over the past year, AMRK's P/CF has been as high as 5.96 and as low as 3.20, with a median of 4.32.

These figures are just a handful of the metrics value investors tend to look at, but they help show that AMark Precious Metals is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AMRK feels like a great value stock at the moment.


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