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Are Investors Undervaluing Ahold (ADRNY) 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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Ahold (ADRNY - Free Report) . ADRNY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 11.28 right now. For comparison, its industry sports an average P/E of 19.29. ADRNY's Forward P/E has been as high as 13.34 and as low as 10.34, with a median of 11.83, all within the past year.
We also note that ADRNY holds a PEG ratio of 1.55. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ADRNY's PEG compares to its industry's average PEG of 1.79. ADRNY's PEG has been as high as 3.07 and as low as 1.55, with a median of 1.86, all within the past year.
Another valuation metric that we should highlight is ADRNY's P/B ratio of 1.80. The P/B is a method of comparing a stock's market value to 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 3.90. Over the past 12 months, ADRNY's P/B has been as high as 2.16 and as low as 1.53, with a median of 1.79.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ADRNY has a P/S ratio of 0.32. This compares to its industry's average P/S of 0.93.
Finally, investors should note that ADRNY has a P/CF ratio of 4.59. 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 P/CF compares to its industry's average P/CF of 15.20. Over the past year, ADRNY's P/CF has been as high as 5.45 and as low as 3.90, with a median of 4.52.
If you're looking for another solid Consumer Products - Staples value stock, take a look at Edgewell Personal Care (EPC - Free Report) . EPC is a # 2 (Buy) stock with a Value score of A.
Additionally, Edgewell Personal Care has a P/B ratio of 1.46 while its industry's price-to-book ratio sits at 3.90. For EPC, this valuation metric has been as high as 1.66, as low as 1.16, with a median of 1.36 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Ahold and Edgewell Personal Care are likely undervalued currently. And when considering the strength of its earnings outlook, ADRNY and EPC sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing Ahold (ADRNY) Right Now?
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Ahold (ADRNY - Free Report) . ADRNY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 11.28 right now. For comparison, its industry sports an average P/E of 19.29. ADRNY's Forward P/E has been as high as 13.34 and as low as 10.34, with a median of 11.83, all within the past year.
We also note that ADRNY holds a PEG ratio of 1.55. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ADRNY's PEG compares to its industry's average PEG of 1.79. ADRNY's PEG has been as high as 3.07 and as low as 1.55, with a median of 1.86, all within the past year.
Another valuation metric that we should highlight is ADRNY's P/B ratio of 1.80. The P/B is a method of comparing a stock's market value to 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 3.90. Over the past 12 months, ADRNY's P/B has been as high as 2.16 and as low as 1.53, with a median of 1.79.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ADRNY has a P/S ratio of 0.32. This compares to its industry's average P/S of 0.93.
Finally, investors should note that ADRNY has a P/CF ratio of 4.59. 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 P/CF compares to its industry's average P/CF of 15.20. Over the past year, ADRNY's P/CF has been as high as 5.45 and as low as 3.90, with a median of 4.52.
If you're looking for another solid Consumer Products - Staples value stock, take a look at Edgewell Personal Care (EPC - Free Report) . EPC is a # 2 (Buy) stock with a Value score of A.
Additionally, Edgewell Personal Care has a P/B ratio of 1.46 while its industry's price-to-book ratio sits at 3.90. For EPC, this valuation metric has been as high as 1.66, as low as 1.16, with a median of 1.36 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Ahold and Edgewell Personal Care are likely undervalued currently. And when considering the strength of its earnings outlook, ADRNY and EPC sticks out as one of the market's strongest value stocks.