Back to top

Image: Bigstock

Should Value Investors Buy Marubeni (MARUY) Stock?

Read MoreHide Full Article

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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.

Marubeni (MARUY - Free Report) is a stock many investors are watching right now. MARUY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.43, while its industry has an average P/E of 19.61. Over the past year, MARUY's Forward P/E has been as high as 10.31 and as low as 5.39, with a median of 8.69.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MARUY has a P/S ratio of 0.52. This compares to its industry's average P/S of 0.99.

Finally, investors should note that MARUY has a P/CF ratio of 6.07. 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 16.06. Within the past 12 months, MARUY's P/CF has been as high as 6.64 and as low as 4.02, with a median of 5.69.

These are only a few of the key metrics included in Marubeni's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, MARUY looks like an impressive value stock at the moment.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Marubeni Corp. (MARUY) - free report >>

Published in