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Is Alliance Resource Partners (ARLP) a Great Value Stock 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.

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.

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 stock to keep an eye on is Alliance Resource Partners (ARLP - Free Report) . ARLP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Investors should also recognize that ARLP has a P/B ratio of 2.05. The P/B ratio is used to compare a stock's market value with 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 2.24. Within the past 52 weeks, ARLP's P/B has been as high as 2.06 and as low as 0.69, with a median of 1.26.

Finally, investors will want to recognize that ARLP has a P/CF ratio of 5.59. 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 6.15. Within the past 12 months, ARLP's P/CF has been as high as 5.63 and as low as 1.51, with a median of 2.46.

Value investors will likely look at more than just these metrics, but the above data helps show that Alliance Resource Partners is likely undervalued currently. And when considering the strength of its earnings outlook, ARLP sticks out at as one of the market's strongest value stocks.


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