Should Value Investors Buy Embotelladora Andina (AKO.B) Stock?

AKO.B

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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 Embotelladora Andina (AKO.B - Free Report) . AKO.B is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 9.57, while its industry has an average P/E of 20.65. Over the past 52 weeks, AKO.B's Forward P/E has been as high as 12.59 and as low as 8.75, with a median of 10.03.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AKO.B has a P/S ratio of 0.74. This compares to its industry's average P/S of 2.

Finally, investors should note that AKO.B has a P/CF ratio of 10.28. 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. This stock's P/CF looks attractive against its industry's average P/CF of 18.80. AKO.B's P/CF has been as high as 18.09 and as low as 9.27, with a median of 12.48, all within the past year.

These are only a few of the key metrics included in Embotelladora Andina's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, AKO.B looks like an impressive value stock at the moment.

4 Oil Stocks with Massive Upsides

Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold." 

Zacks Investment Research has just released an urgent special report to help you bank on this trend. 

In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations. 

Download your free report now to see them.