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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.
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 company to watch right now is Matson (MATX - Free Report) . MATX is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 17.55. This compares to its industry's average Forward P/E of 46.98. 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 18.63.
MATX is also sporting a PEG ratio of 2.55. 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. MATX's industry has an average PEG of 3.99 right now. MATX's PEG has been as high as 3.71 and as low as 2.55, with a median of 3.37, all within the past year.
Another notable valuation metric for MATX is its P/B ratio of 3.13. 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. MATX's current P/B looks attractive when compared to its industry's average P/B of 3.94. MATX's P/B has been as high as 3.20 and as low as 1.34, with a median of 1.97, over the past year.
Finally, investors should note that MATX has a P/CF ratio of 8.09. 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 20.68. Within the past 12 months, MATX's P/CF has been as high as 8.27 and as low as 4.04, with a median of 5.87.
These are only a few of the key metrics included in Matson'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, MATX looks like an impressive value stock at the moment.
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Should Value Investors Buy Matson (MATX) Stock?
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.
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 company to watch right now is Matson (MATX - Free Report) . MATX is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 17.55. This compares to its industry's average Forward P/E of 46.98. 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 18.63.
MATX is also sporting a PEG ratio of 2.55. 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. MATX's industry has an average PEG of 3.99 right now. MATX's PEG has been as high as 3.71 and as low as 2.55, with a median of 3.37, all within the past year.
Another notable valuation metric for MATX is its P/B ratio of 3.13. 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. MATX's current P/B looks attractive when compared to its industry's average P/B of 3.94. MATX's P/B has been as high as 3.20 and as low as 1.34, with a median of 1.97, over the past year.
Finally, investors should note that MATX has a P/CF ratio of 8.09. 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 20.68. Within the past 12 months, MATX's P/CF has been as high as 8.27 and as low as 4.04, with a median of 5.87.
These are only a few of the key metrics included in Matson'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, MATX looks like an impressive value stock at the moment.