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Should Value Investors Buy Alpha Metallurgical Resources (AMR) Stock?
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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.
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Alpha Metallurgical Resources (AMR - Free Report) . AMR is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 8.56, which compares to its industry's average of 11.15. Over the past 52 weeks, AMR's Forward P/E has been as high as 13.15 and as low as 3.66, with a median of 5.64.
Another notable valuation metric for AMR is its P/B ratio of 3.58. 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. AMR's current P/B looks attractive when compared to its industry's average P/B of 5.67. Within the past 52 weeks, AMR's P/B has been as high as 3.72 and as low as 1.31, with a median of 1.81.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AMR has a P/S ratio of 1.67. This compares to its industry's average P/S of 1.86.
Finally, we should also recognize that AMR has a P/CF ratio of 5.63. 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. This stock's P/CF looks attractive against its industry's average P/CF of 22.09. Over the past year, AMR's P/CF has been as high as 5.84 and as low as 1.46, with a median of 2.23.
ClevelandCliffs (CLF - Free Report) may be another strong Mining - Miscellaneous stock to add to your shortlist. CLF is a # 1 (Strong Buy) stock with a Value grade of A.
Furthermore, ClevelandCliffs holds a P/B ratio of 1.13 and its industry's price-to-book ratio is 5.67. CLF's P/B has been as high as 1.46, as low as 0.88, with a median of 1.06 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Alpha Metallurgical Resources and ClevelandCliffs are likely undervalued currently. And when considering the strength of its earnings outlook, AMR and CLF sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy Alpha Metallurgical Resources (AMR) Stock?
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.
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Alpha Metallurgical Resources (AMR - Free Report) . AMR is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 8.56, which compares to its industry's average of 11.15. Over the past 52 weeks, AMR's Forward P/E has been as high as 13.15 and as low as 3.66, with a median of 5.64.
Another notable valuation metric for AMR is its P/B ratio of 3.58. 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. AMR's current P/B looks attractive when compared to its industry's average P/B of 5.67. Within the past 52 weeks, AMR's P/B has been as high as 3.72 and as low as 1.31, with a median of 1.81.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AMR has a P/S ratio of 1.67. This compares to its industry's average P/S of 1.86.
Finally, we should also recognize that AMR has a P/CF ratio of 5.63. 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. This stock's P/CF looks attractive against its industry's average P/CF of 22.09. Over the past year, AMR's P/CF has been as high as 5.84 and as low as 1.46, with a median of 2.23.
ClevelandCliffs (CLF - Free Report) may be another strong Mining - Miscellaneous stock to add to your shortlist. CLF is a # 1 (Strong Buy) stock with a Value grade of A.
Furthermore, ClevelandCliffs holds a P/B ratio of 1.13 and its industry's price-to-book ratio is 5.67. CLF's P/B has been as high as 1.46, as low as 0.88, with a median of 1.06 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Alpha Metallurgical Resources and ClevelandCliffs are likely undervalued currently. And when considering the strength of its earnings outlook, AMR and CLF sticks out as one of the market's strongest value stocks.