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Are Investors Undervaluing Alpha Metallurgical Resources (AMR) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company to watch right now is Alpha Metallurgical Resources (AMR - Free Report) . AMR is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 9.39, while its industry has an average P/E of 11.23. Over the last 12 months, AMR's Forward P/E has been as high as 13.15 and as low as 3.66, with a median of 6.14.
Another valuation metric that we should highlight is AMR's P/B ratio of 3.93. 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 5.58. Over the past year, AMR's P/B has been as high as 3.96 and as low as 1.31, with a median of 1.82.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. AMR has a P/S ratio of 1.82. This compares to its industry's average P/S of 1.96.
Finally, investors will want to recognize that AMR has a P/CF ratio of 6.17. 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. AMR's current P/CF looks attractive when compared to its industry's average P/CF of 21.91. Over the past 52 weeks, AMR's P/CF has been as high as 6.22 and as low as 1.46, with a median of 2.35.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Alpha Metallurgical Resources is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AMR feels like a great value stock at the moment.
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Are Investors Undervaluing Alpha Metallurgical Resources (AMR) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company to watch right now is Alpha Metallurgical Resources (AMR - Free Report) . AMR is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 9.39, while its industry has an average P/E of 11.23. Over the last 12 months, AMR's Forward P/E has been as high as 13.15 and as low as 3.66, with a median of 6.14.
Another valuation metric that we should highlight is AMR's P/B ratio of 3.93. 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 5.58. Over the past year, AMR's P/B has been as high as 3.96 and as low as 1.31, with a median of 1.82.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. AMR has a P/S ratio of 1.82. This compares to its industry's average P/S of 1.96.
Finally, investors will want to recognize that AMR has a P/CF ratio of 6.17. 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. AMR's current P/CF looks attractive when compared to its industry's average P/CF of 21.91. Over the past 52 weeks, AMR's P/CF has been as high as 6.22 and as low as 1.46, with a median of 2.35.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Alpha Metallurgical Resources is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AMR feels like a great value stock at the moment.