We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One stock to keep an eye on is Ahold (ADRNY - Free Report) . ADRNY is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 12.83. This compares to its industry's average Forward P/E of 20.12. ADRNY's Forward P/E has been as high as 14.34 and as low as 10.85, with a median of 12.13, all within the past year.
ADRNY is also sporting a PEG ratio of 1.51. 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 3.26. Over the last 12 months, ADRNY's PEG has been as high as 2.68 and as low as 1.51, with a median of 1.92.
Another valuation metric that we should highlight is ADRNY's P/B ratio of 2.3. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 6.09. Over the past 12 months, ADRNY's P/B has been as high as 2.40 and as low as 1.74, with a median of 1.98.
Value investors also use the P/S ratio. The P/S ratio 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 0.39. This compares to its industry's average P/S of 0.89.
Finally, investors should note that ADRNY has a P/CF ratio of 6.28. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. ADRNY's current P/CF looks attractive when compared to its industry's average P/CF of 14.25. Over the past 52 weeks, ADRNY's P/CF has been as high as 6.54 and as low as 4.75, with a median of 5.37.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should Value Investors Buy Ahold (ADRNY) Stock?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One stock to keep an eye on is Ahold (ADRNY - Free Report) . ADRNY is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 12.83. This compares to its industry's average Forward P/E of 20.12. ADRNY's Forward P/E has been as high as 14.34 and as low as 10.85, with a median of 12.13, all within the past year.
ADRNY is also sporting a PEG ratio of 1.51. 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 3.26. Over the last 12 months, ADRNY's PEG has been as high as 2.68 and as low as 1.51, with a median of 1.92.
Another valuation metric that we should highlight is ADRNY's P/B ratio of 2.3. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 6.09. Over the past 12 months, ADRNY's P/B has been as high as 2.40 and as low as 1.74, with a median of 1.98.
Value investors also use the P/S ratio. The P/S ratio 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 0.39. This compares to its industry's average P/S of 0.89.
Finally, investors should note that ADRNY has a P/CF ratio of 6.28. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. ADRNY's current P/CF looks attractive when compared to its industry's average P/CF of 14.25. Over the past 52 weeks, ADRNY's P/CF has been as high as 6.54 and as low as 4.75, with a median of 5.37.
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.