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Are Investors Undervaluing Alliance Resource Partners (ARLP) 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 Alliance Resource Partners (ARLP - Free Report) . ARLP is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 10.59 right now. For comparison, its industry sports an average P/E of 11.28. Over the past year, ARLP's Forward P/E has been as high as 11.04 and as low as 6.34, with a median of 9.08.
Finally, investors will want to recognize that ARLP has a P/CF ratio of 6.27. 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. This stock's P/CF looks attractive against its industry's average P/CF of 6.65. ARLP's P/CF has been as high as 6.39 and as low as 3.63, with a median of 5.21, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Alliance Resource Partners is likely undervalued currently. And when considering the strength of its earnings outlook, ARLP sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing Alliance Resource Partners (ARLP) Right Now?
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 Alliance Resource Partners (ARLP - Free Report) . ARLP is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 10.59 right now. For comparison, its industry sports an average P/E of 11.28. Over the past year, ARLP's Forward P/E has been as high as 11.04 and as low as 6.34, with a median of 9.08.
Finally, investors will want to recognize that ARLP has a P/CF ratio of 6.27. 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. This stock's P/CF looks attractive against its industry's average P/CF of 6.65. ARLP's P/CF has been as high as 6.39 and as low as 3.63, with a median of 5.21, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Alliance Resource Partners is likely undervalued currently. And when considering the strength of its earnings outlook, ARLP sticks out as one of the market's strongest value stocks.