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Should Value Investors Buy Marubeni (MARUY) 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.

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.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Marubeni (MARUY - Free Report) is a stock many investors are watching right now. MARUY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.29, which compares to its industry's average of 16.84. Over the last 12 months, MARUY's Forward P/E has been as high as 11.91 and as low as 7, with a median of 8.06.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MARUY has a P/S ratio of 0.64. This compares to its industry's average P/S of 1.31.

Finally, our model also underscores that MARUY has a P/CF ratio of 7.14. 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. MARUY's P/CF compares to its industry's average P/CF of 15.72. MARUY's P/CF has been as high as 7.55 and as low as 4.91, with a median of 6.03, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Marubeni is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MARUY feels like a great value stock at the moment.


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