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Is Alpha Metallurgical Resources (AMR) Stock Undervalued Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company to watch right now is Alpha Metallurgical Resources (AMR - Free Report) . AMR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 2.40, which compares to its industry's average of 7.16. Over the last 12 months, AMR's Forward P/E has been as high as 1,470.53 and as low as -1,324.11, with a median of 2.61.
Another notable valuation metric for AMR is its P/B ratio of 2.91. 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 attractive against its industry's average P/B of 3.40. Over the past year, AMR's P/B has been as high as 6.34 and as low as 2, with a median of 3.41.
Value investors also use the P/S ratio. The P/S ratio is 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. AMR has a P/S ratio of 0.92. This compares to its industry's average P/S of 1.97.
Finally, our model also underscores that AMR has a P/CF ratio of 3.22. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. AMR's current P/CF looks attractive when compared to its industry's average P/CF of 9.02. Over the past 52 weeks, AMR's P/CF has been as high as 19.55 and as low as -17.58, with a median of 3.40.
If you're looking for another solid Mining - Miscellaneous value stock, take a look at U.S. Silica Holdings . SLCA is a # 2 (Buy) stock with a Value score of A.
U.S. Silica Holdings sports a P/B ratio of 1.57 as well; this compares to its industry's price-to-book ratio of 3.40. In the past 52 weeks, SLCA's P/B has been as high as 2.59, as low as 0.85, with a median of 1.26.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Alpha Metallurgical Resources and U.S. Silica Holdings are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AMR and SLCA feels like a great value stock at the moment.
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Is Alpha Metallurgical Resources (AMR) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company to watch right now is Alpha Metallurgical Resources (AMR - Free Report) . AMR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 2.40, which compares to its industry's average of 7.16. Over the last 12 months, AMR's Forward P/E has been as high as 1,470.53 and as low as -1,324.11, with a median of 2.61.
Another notable valuation metric for AMR is its P/B ratio of 2.91. 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 attractive against its industry's average P/B of 3.40. Over the past year, AMR's P/B has been as high as 6.34 and as low as 2, with a median of 3.41.
Value investors also use the P/S ratio. The P/S ratio is 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. AMR has a P/S ratio of 0.92. This compares to its industry's average P/S of 1.97.
Finally, our model also underscores that AMR has a P/CF ratio of 3.22. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. AMR's current P/CF looks attractive when compared to its industry's average P/CF of 9.02. Over the past 52 weeks, AMR's P/CF has been as high as 19.55 and as low as -17.58, with a median of 3.40.
If you're looking for another solid Mining - Miscellaneous value stock, take a look at U.S. Silica Holdings . SLCA is a # 2 (Buy) stock with a Value score of A.
U.S. Silica Holdings sports a P/B ratio of 1.57 as well; this compares to its industry's price-to-book ratio of 3.40. In the past 52 weeks, SLCA's P/B has been as high as 2.59, as low as 0.85, with a median of 1.26.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Alpha Metallurgical Resources and U.S. Silica Holdings are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AMR and SLCA feels like a great value stock at the moment.