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Is Ahold NV (ADRNY) Stock Undervalued Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Ahold NV (ADRNY - Free Report) . ADRNY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 13.24, while its industry has an average P/E of 16.08. ADRNY's Forward P/E has been as high as 14.33 and as low as 11.79, with a median of 13.09, all within the past year.

We also note that ADRNY holds a PEG ratio of 1.87. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ADRNY's PEG compares to its industry's average PEG of 2.43. Within the past year, ADRNY's PEG has been as high as 1.87 and as low as 1.24, with a median of 1.44.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ADRNY has a P/S ratio of 0.42. This compares to its industry's average P/S of 0.88.

Finally, our model also underscores that ADRNY has a P/CF ratio of 7.01. 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. This stock's P/CF looks attractive against its industry's average P/CF of 8.08. ADRNY's P/CF has been as high as 7.50 and as low as 5.87, with a median of 6.81, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Ahold NV is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ADRNY feels like a great value stock at the moment.


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