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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 value investors might notice is Ahold NV (ADRNY - Free Report) . ADRNY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 12.81, which compares to its industry's average of 22.56. ADRNY's Forward P/E has been as high as 14.69 and as low as 10.77, with a median of 12.89, all within the past year.

ADRNY is also sporting a PEG ratio of 2.38. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ADRNY's industry has an average PEG of 2.41 right now. Over the past 52 weeks, ADRNY's PEG has been as high as 2.90 and as low as 1.72, with a median of 1.99.

Finally, we should also recognize that ADRNY has a P/CF ratio of 5.23. 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 11.57. Over the past 52 weeks, ADRNY's P/CF has been as high as 6.69 and as low as 4.39, with a median of 5.65.

These are only a few of the key metrics included in Ahold NV's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ADRNY looks like an impressive value stock at the moment.


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