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Are Investors Undervaluing Alliance Resource Partners (ARLP) Right Now?
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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.
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Alliance Resource Partners (ARLP - Free Report) is a stock many investors are watching right now. ARLP is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.59, which compares to its industry's average of 11.28. ARLP's Forward P/E has been as high as 11.04 and as low as 6.34, with a median of 9.08, all within the past year.
Finally, investors will want to recognize that ARLP has a P/CF ratio of 6.27. 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. ARLP's P/CF compares to its industry's average P/CF of 6.65. Within the past 12 months, ARLP's P/CF has been as high as 6.39 and as low as 3.63, with a median of 5.21.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Alliance Resource Partners is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ARLP feels like a great value stock at the moment.
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Are Investors Undervaluing Alliance Resource Partners (ARLP) 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.
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Alliance Resource Partners (ARLP - Free Report) is a stock many investors are watching right now. ARLP is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.59, which compares to its industry's average of 11.28. ARLP's Forward P/E has been as high as 11.04 and as low as 6.34, with a median of 9.08, all within the past year.
Finally, investors will want to recognize that ARLP has a P/CF ratio of 6.27. 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. ARLP's P/CF compares to its industry's average P/CF of 6.65. Within the past 12 months, ARLP's P/CF has been as high as 6.39 and as low as 3.63, with a median of 5.21.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Alliance Resource Partners is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ARLP feels like a great value stock at the moment.