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Is Alpha Metallurgical Resources (AMR) 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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
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 a Value grade of A.
Investors should also recognize that AMR has a P/B ratio of 3.38. The P/B ratio pits a stock's market value against 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 3.94. AMR's P/B has been as high as 6.34 and as low as 2, with a median of 3.37, over the past year.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AMR has a P/S ratio of 1.1. This compares to its industry's average P/S of 2.27.
Finally, we should also recognize that AMR has a P/CF ratio of 3.73. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 10.45. 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 3.30.
Investors could also keep in mind Nexa Resources (NEXA - Free Report) , an Mining - Miscellaneous stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Shares of Nexa Resources currently holds a Forward P/E ratio of 3.23, and its PEG ratio is 0.59. In comparison, its industry sports average P/E and PEG ratios of 8.41 and 0.88.
NEXA's price-to-earnings ratio has been as high as 7.19 and as low as 2.73, with a median of 4.73, while its PEG ratio has been as high as 4.65 and as low as 0.50, with a median of 3.74, all within the past year.
Nexa Resources sports a P/B ratio of 0.65 as well; this compares to its industry's price-to-book ratio of 3.94. In the past 52 weeks, NEXA's P/B has been as high as 0.99, as low as 0.51, with a median of 0.66.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Alpha Metallurgical Resources and Nexa Resources are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AMR and NEXA feels like a great value stock at the moment.
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Is Alpha Metallurgical Resources (AMR) a Great Value Stock Right Now?
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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
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 a Value grade of A.
Investors should also recognize that AMR has a P/B ratio of 3.38. The P/B ratio pits a stock's market value against 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 3.94. AMR's P/B has been as high as 6.34 and as low as 2, with a median of 3.37, over the past year.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AMR has a P/S ratio of 1.1. This compares to its industry's average P/S of 2.27.
Finally, we should also recognize that AMR has a P/CF ratio of 3.73. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 10.45. 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 3.30.
Investors could also keep in mind Nexa Resources (NEXA - Free Report) , an Mining - Miscellaneous stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Shares of Nexa Resources currently holds a Forward P/E ratio of 3.23, and its PEG ratio is 0.59. In comparison, its industry sports average P/E and PEG ratios of 8.41 and 0.88.
NEXA's price-to-earnings ratio has been as high as 7.19 and as low as 2.73, with a median of 4.73, while its PEG ratio has been as high as 4.65 and as low as 0.50, with a median of 3.74, all within the past year.
Nexa Resources sports a P/B ratio of 0.65 as well; this compares to its industry's price-to-book ratio of 3.94. In the past 52 weeks, NEXA's P/B has been as high as 0.99, as low as 0.51, with a median of 0.66.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Alpha Metallurgical Resources and Nexa Resources are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AMR and NEXA feels like a great value stock at the moment.