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Are Investors Undervaluing Ahold NV (ADRNY) 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 NV (ADRNY - Free Report) . ADRNY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 13.49 right now. For comparison, its industry sports an average P/E of 16.54. ADRNY's Forward P/E has been as high as 14.62 and as low as 11.79, with a median of 12.68, all within the past year.
ADRNY is also sporting a PEG ratio of 1.44. 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 industry has an average PEG of 2.42 right now. Within the past year, ADRNY's PEG has been as high as 1.63 and as low as 1.07, with a median of 1.39.
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 0.43. This compares to its industry's average P/S of 1.07.
Finally, investors should note that ADRNY has a P/CF ratio of 6.67. 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. ADRNY's P/CF compares to its industry's average P/CF of 7.52. ADRNY's P/CF has been as high as 8.15 and as low as 5.71, with a median of 6.74, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Ahold NV is likely undervalued currently. And when considering the strength of its earnings outlook, ADRNY sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Ahold NV (ADRNY) 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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 NV (ADRNY - Free Report) . ADRNY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 13.49 right now. For comparison, its industry sports an average P/E of 16.54. ADRNY's Forward P/E has been as high as 14.62 and as low as 11.79, with a median of 12.68, all within the past year.
ADRNY is also sporting a PEG ratio of 1.44. 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 industry has an average PEG of 2.42 right now. Within the past year, ADRNY's PEG has been as high as 1.63 and as low as 1.07, with a median of 1.39.
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 0.43. This compares to its industry's average P/S of 1.07.
Finally, investors should note that ADRNY has a P/CF ratio of 6.67. 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. ADRNY's P/CF compares to its industry's average P/CF of 7.52. ADRNY's P/CF has been as high as 8.15 and as low as 5.71, with a median of 6.74, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Ahold NV is likely undervalued currently. And when considering the strength of its earnings outlook, ADRNY sticks out at as one of the market's strongest value stocks.