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Is Matson (MATX) a Great Value Stock Right Now?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Matson (MATX - Free Report) . MATX 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 16.14, which compares to its industry's average of 17.74. Over the last 12 months, MATX's Forward P/E has been as high as 16.31 and as low as 11.88, with a median of 13.86.
Investors should also recognize that MATX has a P/B ratio of 2.07. 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 3.18. Over the past 12 months, MATX's P/B has been as high as 2.07 and as low as 1.30, with a median of 1.70.
Finally, our model also underscores that MATX has a P/CF ratio of 7.71. 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. MATX's current P/CF looks attractive when compared to its industry's average P/CF of 12.23. Within the past 12 months, MATX's P/CF has been as high as 7.94 and as low as 5.18, with a median of 6.84.
These are only a few of the key metrics included in Matson'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, MATX looks like an impressive value stock at the moment.