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Is Ahold NV (ADRNY) a Great Value Stock Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 stock to keep an eye on is Ahold NV (ADRNY - Free Report) . ADRNY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 14.32. This compares to its industry's average Forward P/E of 19.61. ADRNY's Forward P/E has been as high as 14.69 and as low as 10.77, with a median of 13.20, all within the past year.

ADRNY is also sporting a PEG ratio of 2.80. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ADRNY's PEG compares to its industry's average PEG of 3.15. Within the past year, ADRNY's PEG has been as high as 3.10 and as low as 1.76, with a median of 2.22.

Finally, investors should note that ADRNY has a P/CF ratio of 5.75. 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. ADRNY's P/CF compares to its industry's average P/CF of 16.33. Over the past 52 weeks, ADRNY's P/CF has been as high as 6.14 and as low as 4.39, with a median of 5.44.

These are just a handful of the figures considered in Ahold NV'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 ADRNY is an impressive value stock right now.


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