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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 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 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 13.40, which compares to its industry's average of 22.22. Over the last 12 months, ADRNY's Forward P/E has been as high as 14.69 and as low as 10.77, with a median of 13.10.

Finally, investors should note that ADRNY has a P/CF ratio of 5.40. 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. ADRNY's P/CF compares to its industry's average P/CF of 11.57. ADRNY's P/CF has been as high as 6.14 and as low as 4.39, with a median of 5.45, all within the past year.

These are just a handful of the figures considered in Ahold NV'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 is an impressive value stock right now.


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