Back to top

Image: Bigstock

Should Value Investors Buy Marubeni (MARUY) Stock?

Read MoreHide Full Article

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, 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 Marubeni (MARUY - Free Report) . MARUY is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.57, which compares to its industry's average of 16.55. MARUY's Forward P/E has been as high as 11.91 and as low as 7.26, with a median of 8.21, all within the past year.

MARUY is also sporting a PEG ratio of 1.64. 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. MARUY's PEG compares to its industry's average PEG of 1.92. 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. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MARUY has a P/S ratio of 0.74. This compares to its industry's average P/S of 1.49.

Finally, investors will want to recognize that MARUY has a P/CF ratio of 8.04. 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 current P/CF looks attractive when compared to its industry's average P/CF of 16.69. MARUY's P/CF has been as high as 8.05 and as low as 4.91, with a median of 6.08, all within the past year.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Marubeni Corp. (MARUY) - free report >>

Published in