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Should Value Investors Buy ARKO (ARKO) 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

One company to watch right now is ARKO (ARKO - Free Report) . ARKO is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value.

Investors should also recognize that ARKO has a P/B ratio of 2.11. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. ARKO's current P/B looks attractive when compared to its industry's average P/B of 6.06. Within the past 52 weeks, ARKO's P/B has been as high as 3.27 and as low as 1.60, with a median of 2.64.

Value investors will likely look at more than just these metrics, but the above data helps show that ARKO is likely undervalued currently. And when considering the strength of its earnings outlook, ARKO sticks out as one of the market's strongest value stocks.


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