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

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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Ahold NV (ADRNY - Free Report) . ADRNY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 12.63, while its industry has an average P/E of 19.03. Over the last 12 months, ADRNY's Forward P/E has been as high as 15.47 and as low as 10.77, with a median of 13.28.

ADRNY is also sporting a PEG ratio of 2.67. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ADRNY's industry currently sports an average PEG of 3.05. Over the last 12 months, ADRNY's PEG has been as high as 3.16 and as low as 2.03, with a median of 2.68.

Finally, investors will want to recognize that ADRNY has a P/CF ratio of 5.20. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 16.33. Within the past 12 months, ADRNY's P/CF has been as high as 6.08 and as low as 4.39, with a median of 5.33.

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


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