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Is Amcor (AMCR) a Great Value Stock Right Now?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.

Amcor (AMCR - Free Report) is a stock many investors are watching right now. AMCR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

We should also highlight that AMCR has a P/B ratio of 3.74. The P/B ratio pits a stock's market value against 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 8.98. Within the past 52 weeks, AMCR's P/B has been as high as 4.82 and as low as 3.66, with a median of 4.18.

Finally, we should also recognize that AMCR has a P/CF ratio of 9.98. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. AMCR's P/CF compares to its industry's average P/CF of 20.62. Within the past 12 months, AMCR's P/CF has been as high as 13.91 and as low as 9.98, with a median of 11.81.

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


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