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Are Investors Undervaluing Amcor (AMCR) Right Now?

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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, 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

Amcor (AMCR - Free Report) is a stock many investors are watching right now. AMCR 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 13.61. This compares to its industry's average Forward P/E of 13.73. Over the past 52 weeks, AMCR's Forward P/E has been as high as 15.29 and as low as 12.10, with a median of 13.64.

Another notable valuation metric for AMCR is its P/B ratio of 3.51. The P/B ratio is used to compare a stock's market value with 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 8.47. AMCR's P/B has been as high as 4.50 and as low as 3.08, with a median of 3.53, over the past year.

Finally, investors will want to recognize that AMCR has a P/CF ratio of 8.90. 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. This stock's P/CF looks attractive against its industry's average P/CF of 20.82. Over the past year, AMCR's P/CF has been as high as 12.44 and as low as 7.80, with a median of 9.12.

If you're looking for another solid Containers - Paper and Packaging value stock, take a look at Graphic Packaging Holding Company (GPK - Free Report) . GPK is a # 2 (Buy) stock with a Value score of A.

Graphic Packaging Holding Company is currently trading with a Forward P/E ratio of 8.64 while its PEG ratio sits at 0.35. Both of the company's metrics compare favorably to its industry's average P/E of 13.73 and average PEG ratio of 2.47.

Over the past year, GPK's P/E has been as high as 9.55, as low as 7.29, with a median of 8.34; its PEG ratio has been as high as 0.38, as low as 0.29, with a median of 4.83 during the same time period.

Graphic Packaging Holding Company sports a P/B ratio of 2.97 as well; this compares to its industry's price-to-book ratio of 8.47. In the past 52 weeks, GPK's P/B has been as high as 3.61, as low as 2.43, with a median of 3.06.

Value investors will likely look at more than just these metrics, but the above data helps show that Amcor and Graphic Packaging Holding Company are likely undervalued currently. And when considering the strength of its earnings outlook, AMCR and GPK sticks out as one of the market's strongest value stocks.


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