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Should Value Investors Buy Alpha Metallurgical Resources (AMR) Stock?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 value investors might notice is Alpha Metallurgical Resources (AMR - Free Report) . AMR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Another valuation metric that we should highlight is AMR's P/B ratio of 3.02. 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 company's current P/B looks solid when compared to its industry's average P/B of 3.25. Over the past year, AMR's P/B has been as high as 6.34 and as low as 1.50, with a median of 3.22.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AMR has a P/S ratio of 0.99. This compares to its industry's average P/S of 2.1.

Finally, our model also underscores that AMR has a P/CF ratio of 3.34. 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 stock's P/CF looks attractive against its industry's average P/CF of 9.55. Over the past 52 weeks, AMR's P/CF has been as high as 19.55 and as low as -17.58, with a median of 2.99.

Silvercorp Metals (SVM - Free Report) may be another strong Mining - Miscellaneous stock to add to your shortlist. SVM is a # 2 (Buy) stock with a Value grade of A.

Furthermore, Silvercorp Metals holds a P/B ratio of 0.77 and its industry's price-to-book ratio is 3.25. SVM's P/B has been as high as 2.03, as low as 0.73, with a median of 1.19 over the past 12 months.

These are only a few of the key metrics included in Alpha Metallurgical Resources and Silvercorp Metals strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, AMR and SVM look like an impressive value stock at the moment.


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

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