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Should Value Investors Buy Alpha Metallurgical Resources (AMR) Stock?
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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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company to watch right now is Alpha Metallurgical Resources (AMR - Free Report) . AMR is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 8.71, while its industry has an average P/E of 11.16. 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 6.25.
Another notable valuation metric for AMR is its P/B ratio of 3.64. The P/B ratio pits a stock's market value against 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 5.38. Within the past 52 weeks, AMR's P/B has been as high as 3.96 and as low as 1.31, with a median of 1.87.
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 1.7. This compares to its industry's average P/S of 1.93.
Finally, investors should note that AMR has a P/CF ratio of 5.72. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 21.20. AMR's P/CF has been as high as 6.23 and as low as 1.46, with a median of 2.66, all within the past year.
If you're looking for another solid Mining - Miscellaneous value stock, take a look at Silvercorp Metals (SVM - Free Report) . SVM is a # 2 (Buy) stock with a Value score of A.
Silvercorp Metals also has a P/B ratio of 0.70 compared to its industry's price-to-book ratio of 5.38. Over the past year, its P/B ratio has been as high as 1.27, as low as 0.65, with a median of 0.85.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Alpha Metallurgical Resources and Silvercorp Metals are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AMR and SVM feels like a great value stock at the moment.
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Should Value Investors Buy Alpha Metallurgical Resources (AMR) Stock?
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company to watch right now is Alpha Metallurgical Resources (AMR - Free Report) . AMR is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 8.71, while its industry has an average P/E of 11.16. 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 6.25.
Another notable valuation metric for AMR is its P/B ratio of 3.64. The P/B ratio pits a stock's market value against 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 5.38. Within the past 52 weeks, AMR's P/B has been as high as 3.96 and as low as 1.31, with a median of 1.87.
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 1.7. This compares to its industry's average P/S of 1.93.
Finally, investors should note that AMR has a P/CF ratio of 5.72. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 21.20. AMR's P/CF has been as high as 6.23 and as low as 1.46, with a median of 2.66, all within the past year.
If you're looking for another solid Mining - Miscellaneous value stock, take a look at Silvercorp Metals (SVM - Free Report) . SVM is a # 2 (Buy) stock with a Value score of A.
Silvercorp Metals also has a P/B ratio of 0.70 compared to its industry's price-to-book ratio of 5.38. Over the past year, its P/B ratio has been as high as 1.27, as low as 0.65, with a median of 0.85.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Alpha Metallurgical Resources and Silvercorp Metals are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AMR and SVM feels like a great value stock at the moment.