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Are Investors Undervaluing Ahold (ADRNY) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Ahold (ADRNY - Free Report) is a stock many investors are watching right now. ADRNY is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 12.72, which compares to its industry's average of 20.07. Over the past year, ADRNY's Forward P/E has been as high as 14.34 and as low as 11.26, with a median of 12.33.
We also note that ADRNY holds a PEG ratio of 1.57. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ADRNY's PEG compares to its industry's average PEG of 3.31. Over the past 52 weeks, ADRNY's PEG has been as high as 2.68 and as low as 1.51, with a median of 1.91.
Investors should also recognize that ADRNY has a P/B ratio of 2.29. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. ADRNY's current P/B looks attractive when compared to its industry's average P/B of 6.11. Over the past 12 months, ADRNY's P/B has been as high as 2.39 and as low as 1.78, with a median of 2.00.
Value investors also use the P/S ratio. The P/S ratio 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. ADRNY has a P/S ratio of 0.38. This compares to its industry's average P/S of 0.93.
Finally, we should also recognize that ADRNY has a P/CF ratio of 6.26. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.25. Within the past 12 months, ADRNY's P/CF has been as high as 6.54 and as low as 4.94, with a median of 5.44.
These are only a few of the key metrics included in Ahold'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, ADRNY looks like an impressive value stock at the moment.
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Are Investors Undervaluing Ahold (ADRNY) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Ahold (ADRNY - Free Report) is a stock many investors are watching right now. ADRNY is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 12.72, which compares to its industry's average of 20.07. Over the past year, ADRNY's Forward P/E has been as high as 14.34 and as low as 11.26, with a median of 12.33.
We also note that ADRNY holds a PEG ratio of 1.57. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ADRNY's PEG compares to its industry's average PEG of 3.31. Over the past 52 weeks, ADRNY's PEG has been as high as 2.68 and as low as 1.51, with a median of 1.91.
Investors should also recognize that ADRNY has a P/B ratio of 2.29. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. ADRNY's current P/B looks attractive when compared to its industry's average P/B of 6.11. Over the past 12 months, ADRNY's P/B has been as high as 2.39 and as low as 1.78, with a median of 2.00.
Value investors also use the P/S ratio. The P/S ratio 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. ADRNY has a P/S ratio of 0.38. This compares to its industry's average P/S of 0.93.
Finally, we should also recognize that ADRNY has a P/CF ratio of 6.26. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.25. Within the past 12 months, ADRNY's P/CF has been as high as 6.54 and as low as 4.94, with a median of 5.44.
These are only a few of the key metrics included in Ahold'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, ADRNY looks like an impressive value stock at the moment.