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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company value investors might notice is Ahold (ADRNY - Free Report) . ADRNY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 12.38. This compares to its industry's average Forward P/E of 19.85. Over the last 12 months, ADRNY's Forward P/E has been as high as 15.40 and as low as 10.34, with a median of 11.87.
Another notable valuation metric for ADRNY is its P/B ratio of 1.86. 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 stock's P/B looks solid versus its industry's average P/B of 4.02. Within the past 52 weeks, ADRNY's P/B has been as high as 2.29 and as low as 1.53, with a median of 1.80.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ADRNY has a P/S ratio of 0.33. This compares to its industry's average P/S of 0.92.
Finally, we should also recognize that ADRNY has a P/CF ratio of 4.75. 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. ADRNY's current P/CF looks attractive when compared to its industry's average P/CF of 15.68. ADRNY's P/CF has been as high as 5.78 and as low as 3.90, with a median of 4.52, all within the past year.
Another great Consumer Products - Staples stock you could consider is Edgewell Personal Care (EPC - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Edgewell Personal Care sports a P/B ratio of 1.44 as well; this compares to its industry's price-to-book ratio of 4.02. In the past 52 weeks, EPC's P/B has been as high as 1.82, as low as 1.16, with a median of 1.36.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Ahold and Edgewell Personal Care are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ADRNY and EPC feels like a great value stock at the moment.
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Is Ahold (ADRNY) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company value investors might notice is Ahold (ADRNY - Free Report) . ADRNY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 12.38. This compares to its industry's average Forward P/E of 19.85. Over the last 12 months, ADRNY's Forward P/E has been as high as 15.40 and as low as 10.34, with a median of 11.87.
Another notable valuation metric for ADRNY is its P/B ratio of 1.86. 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 stock's P/B looks solid versus its industry's average P/B of 4.02. Within the past 52 weeks, ADRNY's P/B has been as high as 2.29 and as low as 1.53, with a median of 1.80.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ADRNY has a P/S ratio of 0.33. This compares to its industry's average P/S of 0.92.
Finally, we should also recognize that ADRNY has a P/CF ratio of 4.75. 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. ADRNY's current P/CF looks attractive when compared to its industry's average P/CF of 15.68. ADRNY's P/CF has been as high as 5.78 and as low as 3.90, with a median of 4.52, all within the past year.
Another great Consumer Products - Staples stock you could consider is Edgewell Personal Care (EPC - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Edgewell Personal Care sports a P/B ratio of 1.44 as well; this compares to its industry's price-to-book ratio of 4.02. In the past 52 weeks, EPC's P/B has been as high as 1.82, as low as 1.16, with a median of 1.36.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Ahold and Edgewell Personal Care are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ADRNY and EPC feels like a great value stock at the moment.