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Is Ahold NV (ADRNY) a Great Value Stock Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Ahold NV (ADRNY - Free Report) is a stock many investors are watching right now. ADRNY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 14.09. This compares to its industry's average Forward P/E of 16.53. Over the last 12 months, ADRNY's Forward P/E has been as high as 14.33 and as low as 11.79, with a median of 13.20.

ADRNY is also sporting a PEG ratio of 1.99. 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 industry currently sports an average PEG of 2.49. Over the past 52 weeks, ADRNY's PEG has been as high as 1.99 and as low as 1.24, with a median of 1.44.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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 0.45. This compares to its industry's average P/S of 0.95.

Finally, investors will want to recognize that ADRNY has a P/CF ratio of 7.55. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 8.72. Over the past year, ADRNY's P/CF has been as high as 7.55 and as low as 5.87, with a median of 6.82.

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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