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Are Investors Undervaluing Matson (MATX) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Matson (MATX - Free Report) . MATX is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 21.12, while its industry has an average P/E of 25.62. Over the last 12 months, MATX's Forward P/E has been as high as 28.13 and as low as 12.74, with a median of 18.68.
Another notable valuation metric for MATX is its P/B ratio of 2.82. Investors use the P/B ratio to look at a stock's market value versus 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 3.94. Within the past 52 weeks, MATX's P/B has been as high as 2.86 and as low as 1.34, with a median of 1.97.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MATX has a P/S ratio of 1.15. This compares to its industry's average P/S of 1.19.
Finally, investors will want to recognize that MATX has a P/CF ratio of 7.29. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 20.68. Over the past 52 weeks, MATX's P/CF has been as high as 9.71 and as low as 4.04, with a median of 5.87.
These are just a handful of the figures considered in Matson'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 MATX is an impressive value stock right now.
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Are Investors Undervaluing Matson (MATX) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Matson (MATX - Free Report) . MATX is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 21.12, while its industry has an average P/E of 25.62. Over the last 12 months, MATX's Forward P/E has been as high as 28.13 and as low as 12.74, with a median of 18.68.
Another notable valuation metric for MATX is its P/B ratio of 2.82. Investors use the P/B ratio to look at a stock's market value versus 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 3.94. Within the past 52 weeks, MATX's P/B has been as high as 2.86 and as low as 1.34, with a median of 1.97.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MATX has a P/S ratio of 1.15. This compares to its industry's average P/S of 1.19.
Finally, investors will want to recognize that MATX has a P/CF ratio of 7.29. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 20.68. Over the past 52 weeks, MATX's P/CF has been as high as 9.71 and as low as 4.04, with a median of 5.87.
These are just a handful of the figures considered in Matson'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 MATX is an impressive value stock right now.