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

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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.

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.

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 to watch right now is Alpha Metallurgical Resources (AMR - Free Report) . AMR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Investors should also recognize that AMR has a P/B ratio of 2.64. 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 solid versus its industry's average P/B of 3.08. Within the past 52 weeks, AMR's P/B has been as high as 6.34 and as low as 2, with a median of 3.41.

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 0.61. This compares to its industry's average P/S of 1.73.

Finally, investors should note that AMR has a P/CF ratio of 2.90. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 7.80. 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 3.40.

Another great Mining - Miscellaneous stock you could consider is U.S. Silica Holdings (SLCA - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Furthermore, U.S. Silica Holdings holds a P/B ratio of 1.65 and its industry's price-to-book ratio is 3.08. SLCA's P/B has been as high as 2.59, as low as 0.85, with a median of 1.29 over the past 12 months.

These are just a handful of the figures considered in Alpha Metallurgical Resources and U.S. Silica Holdings's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that AMR and SLCA is an impressive value stock right now.


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

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