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Is ARKO (ARKO) Stock Undervalued 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.

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 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.

One company to watch right now is ARKO (ARKO - Free Report) . ARKO is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.

Investors should also recognize that ARKO has a P/B ratio of 2.09. 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 5.26. 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 2.18.

These are just a handful of the figures considered in ARKO's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ARKO is an impressive value stock right now.

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