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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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Ahold (ADRNY - Free Report) is a stock many investors are watching right now. ADRNY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 11.55, while its industry has an average P/E of 18.54. Over the past 52 weeks, ADRNY's Forward P/E has been as high as 13.34 and as low as 10.34, with a median of 11.74.
We should also highlight that ADRNY has a P/B ratio of 1.93. 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 stock's P/B looks attractive against its industry's average P/B of 3.61. Over the past year, 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 0.34. 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 4.80. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. ADRNY's P/CF compares to its industry's average P/CF of 13.97. Over the past 52 weeks, ADRNY's P/CF has been as high as 5.38 and as low as 3.90, with a median of 4.50.
If you're looking for another solid Consumer Products - Staples value stock, take a look at ARKO (ARKO - Free Report) . ARKO is a # 2 (Buy) stock with a Value score of A.
ARKO also has a P/B ratio of 3.68 compared to its industry's price-to-book ratio of 3.61. Over the past year, its P/B ratio has been as high as 5.16, as low as 3.53, with a median of 4.22.
These are just a handful of the figures considered in Ahold and ARKO'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 ADRNY and ARKO is an impressive value stock right now.
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Should Value Investors Buy Ahold (ADRNY) Stock?
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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Ahold (ADRNY - Free Report) is a stock many investors are watching right now. ADRNY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 11.55, while its industry has an average P/E of 18.54. Over the past 52 weeks, ADRNY's Forward P/E has been as high as 13.34 and as low as 10.34, with a median of 11.74.
We should also highlight that ADRNY has a P/B ratio of 1.93. 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 stock's P/B looks attractive against its industry's average P/B of 3.61. Over the past year, 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 0.34. 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 4.80. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. ADRNY's P/CF compares to its industry's average P/CF of 13.97. Over the past 52 weeks, ADRNY's P/CF has been as high as 5.38 and as low as 3.90, with a median of 4.50.
If you're looking for another solid Consumer Products - Staples value stock, take a look at ARKO (ARKO - Free Report) . ARKO is a # 2 (Buy) stock with a Value score of A.
ARKO also has a P/B ratio of 3.68 compared to its industry's price-to-book ratio of 3.61. Over the past year, its P/B ratio has been as high as 5.16, as low as 3.53, with a median of 4.22.
These are just a handful of the figures considered in Ahold and ARKO'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 ADRNY and ARKO is an impressive value stock right now.