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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Ahold NV (ADRNY). ADRNY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 14.41. This compares to its industry's average Forward P/E of 19.53. Over the past 52 weeks, ADRNY's Forward P/E has been as high as 14.73 and as low as 10.77, with a median of 13.29.
We also note that ADRNY holds a PEG ratio of 2.82. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ADRNY's PEG compares to its industry's average PEG of 3.13. Over the past 52 weeks, ADRNY's PEG has been as high as 3.10 and as low as 1.76, with a median of 2.25.
Finally, we should also recognize that ADRNY has a P/CF ratio of 5.82. 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 P/CF compares to its industry's average P/CF of 16.33. ADRNY's P/CF has been as high as 6.14 and as low as 4.39, with a median of 5.44, all within the past year.
These are just a handful of the figures considered in Ahold NV'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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