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Are Investors Undervaluing Marubeni (MARUY) 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 Marubeni (MARUY - Free Report) . MARUY is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 10.02 right now. For comparison, its industry sports an average P/E of 16.32. MARUY's Forward P/E has been as high as 11.91 and as low as 7.26, with a median of 8.14, all within the past year.

MARUY is also sporting a PEG ratio of 1.55. 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. MARUY's PEG compares to its industry's average PEG of 1.93. MARUY's PEG has been as high as 3.57 and as low as 1.11, with a median of 2.22, all within the past year.

Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MARUY has a P/S ratio of 0.7. This compares to its industry's average P/S of 1.23.

Finally, investors should note that MARUY has a P/CF ratio of 7.62. 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. MARUY's P/CF compares to its industry's average P/CF of 16.41. Within the past 12 months, MARUY's P/CF has been as high as 7.77 and as low as 4.90, with a median of 6.08.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Marubeni is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MARUY feels like a great value stock at the moment.


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