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Is Ahold (ADRNY) Stock Undervalued Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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.

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.

Ahold (ADRNY - Free Report) is a stock many investors are watching right now. ADRNY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.73, which compares to its industry's average of 17.49. Over the past 52 weeks, ADRNY's Forward P/E has been as high as 12.91 and as low as 10.07, with a median of 11.46.

Another valuation metric that we should highlight is ADRNY's P/B ratio of 1.71. The P/B ratio pits a stock's market value against 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 3.99. Over the past year, ADRNY's P/B has been as high as 2.05 and as low as 1.63, with a median of 1.87.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. ADRNY has a P/S ratio of 0.3. This compares to its industry's average P/S of 0.79.

If you're looking for another solid Consumer Products - Staples value stock, take a look at Edgewell Personal Care (EPC - Free Report) . EPC is a # 2 (Buy) stock with a Value score of A.

Edgewell Personal Care also has a P/B ratio of 1.16 compared to its industry's price-to-book ratio of 3.99. Over the past year, its P/B ratio has been as high as 1.55, as low as 1.13, with a median of 1.33.

These are only a few of the key metrics included in Ahold and Edgewell Personal Care strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ADRNY and EPC look like an impressive value stock at the moment.


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