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Is AMark Precious Metals (AMRK) Stock Undervalued Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 stock to keep an eye on is AMark Precious Metals (AMRK - Free Report) . AMRK is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Another notable valuation metric for AMRK is its P/B ratio of 1.52. 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 1.64. AMRK's P/B has been as high as 1.73 and as low as 1.13, with a median of 1.50, over the past year.

Finally, investors should note that AMRK has a P/CF ratio of 5.23. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 6.78. Over the past year, AMRK's P/CF has been as high as 5.97 and as low as 3.63, with a median of 4.97.

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


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