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Is Ahold (ADRNY) 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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 stock to keep an eye on is Ahold (ADRNY - Free Report) . ADRNY is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 12.51. This compares to its industry's average Forward P/E of 18.05. ADRNY's Forward P/E has been as high as 14.34 and as low as 11.40, with a median of 12.65, all within the past year.

Investors should also note that ADRNY holds a PEG ratio of 1.57. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ADRNY's PEG compares to its industry's average PEG of 2.36. 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 1.90.

Investors should also recognize that ADRNY has a P/B ratio of 2.26. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 5.10. 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 2.04.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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 0.29. This compares to its industry's average P/S of 0.61.

Finally, we should also recognize that ADRNY has a P/CF ratio of 5.79. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 13.01. Over the past 52 weeks, ADRNY's P/CF has been as high as 6.54 and as low as 5.03, with a median of 5.73.

Another great Consumer Products - Staples stock you could consider is Newell Brands (NWL - Free Report) , which is a Zacks Rank of #1 (Strong Buy) stock with a Value Score of A.

Shares of Newell Brands currently hold a Forward P/E ratio of 8.03, and its PEG ratio is 0.63. In comparison, its industry sports average P/E and PEG ratios of 18.05 and 2.36.

Over the past year, NWL's P/E has been as high as 15.23, as low as 5.93, with a median of 8.85; its PEG ratio has been as high as 1.41, as low as 0.60, with a median of 0.88 during the same time period.

Newell Brands also has a P/B ratio of 0.86 compared to its industry's price-to-book ratio of 5.10. Over the past year, its P/B ratio has been as high as 1.69, as low as 0.70, with a median of 0.98.

These are just a handful of the figures considered in Ahold and Newell Brands'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 ADRNY and NWL is an impressive value stock right now.

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