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Should Value Investors Buy Marubeni (MARUY) Stock?

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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, 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Marubeni (MARUY - Free Report) . MARUY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.53, while its industry has an average P/E of 19.73. MARUY's Forward P/E has been as high as 10.31 and as low as 3.94, with a median of 6.69, all within the past year.

We should also highlight that MARUY has a P/B ratio of 1.21. 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 company's current P/B looks solid when compared to its industry's average P/B of 3.59. Within the past 52 weeks, MARUY's P/B has been as high as 1.42 and as low as 0.70, with a median of 1.10.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MARUY has a P/S ratio of 0.47. This compares to its industry's average P/S of 0.79.

Finally, we should also recognize that MARUY has a P/CF ratio of 6.25. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.75. Over the past year, MARUY's P/CF has been as high as 6.47 and as low as 2.76, with a median of 4.26.

Value investors will likely look at more than just these metrics, but the above data helps show that Marubeni is likely undervalued currently. And when considering the strength of its earnings outlook, MARUY sticks out at as one of the market's strongest value stocks.


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