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Are Investors Undervaluing Ahold (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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company to watch right now is Ahold (ADRNY - Free Report) . ADRNY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 12.02. This compares to its industry's average Forward P/E of 18.84. ADRNY's Forward P/E has been as high as 12.17 and as low as 9.92, with a median of 10.84, all within the past year.
ADRNY is also sporting a PEG ratio of 1.95. 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 PEG compares to its industry's average PEG of 2.07. Within the past year, ADRNY's PEG has been as high as 5.04 and as low as 1.83, with a median of 3.08.
Another valuation metric that we should highlight is ADRNY's P/B ratio of 1.97. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 4.61. Over the past 12 months, ADRNY's P/B has been as high as 1.99 and as low as 1.61, with a median of 1.73.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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 0.34. This compares to its industry's average P/S of 0.69.
These are just a handful of the figures considered in Ahold'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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Are Investors Undervaluing Ahold (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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company to watch right now is Ahold (ADRNY - Free Report) . ADRNY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 12.02. This compares to its industry's average Forward P/E of 18.84. ADRNY's Forward P/E has been as high as 12.17 and as low as 9.92, with a median of 10.84, all within the past year.
ADRNY is also sporting a PEG ratio of 1.95. 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 PEG compares to its industry's average PEG of 2.07. Within the past year, ADRNY's PEG has been as high as 5.04 and as low as 1.83, with a median of 3.08.
Another valuation metric that we should highlight is ADRNY's P/B ratio of 1.97. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 4.61. Over the past 12 months, ADRNY's P/B has been as high as 1.99 and as low as 1.61, with a median of 1.73.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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 0.34. This compares to its industry's average P/S of 0.69.
These are just a handful of the figures considered in Ahold'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.