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Are Investors Undervaluing Alpha Metallurgical Resources (AMR) Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

Alpha Metallurgical Resources (AMR - Free Report) is a stock many investors are watching right now. AMR is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. AMR has a P/S ratio of 1.06. This compares to its industry's average P/S of 2.77.

Finally, investors will want to recognize that AMR has a P/CF ratio of 5.92. 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. AMR's current P/CF looks attractive when compared to its industry's average P/CF of 11.79. Over the past year, AMR's P/CF has been as high as 19.55 and as low as -17.58, with a median of 2.73.

If you're looking for another solid Mining - Miscellaneous value stock, take a look at Silvercorp Metals (SVM - Free Report) . SVM is a # 2 (Buy) stock with a Value score of A.

Silvercorp Metals sports a P/B ratio of 1.03 as well; this compares to its industry's price-to-book ratio of 1.29. In the past 52 weeks, SVM's P/B has been as high as 2.03, as low as 0.91, with a median of 1.23.

Value investors will likely look at more than just these metrics, but the above data helps show that Alpha Metallurgical Resources and Silvercorp Metals are likely undervalued currently. And when considering the strength of its earnings outlook, AMR and SVM sticks out as one of the market's strongest value stocks.


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Alpha Metallurgical Resources, Inc. (AMR) - free report >>

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