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Is Ahold (ADRNY) Stock Undervalued Right Now?

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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.

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 stock to keep an eye on is Ahold (ADRNY - Free Report) . ADRNY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 11.39, while its industry has an average P/E of 18.64. Over the past 52 weeks, ADRNY's Forward P/E has been as high as 12.14 and as low as 9.92, with a median of 10.92.

Investors should also recognize that ADRNY has a P/B ratio of 1.89. 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. ADRNY's current P/B looks attractive when compared to its industry's average P/B of 4.13. ADRNY's P/B has been as high as 2.05 and as low as 1.62, with a median of 1.77, over the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ADRNY has a P/S ratio of 0.32. This compares to its industry's average P/S of 0.73.

Finally, investors should note that ADRNY has a P/CF ratio of 4.91. 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 19.19. ADRNY's P/CF has been as high as 5.06 and as low as 4.08, with a median of 4.55, all within the past year.

Another great Consumer Products - Staples stock you could consider is ARKO (ARKO - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.

Furthermore, ARKO holds a P/B ratio of 2.53 and its industry's price-to-book ratio is 4.13. ARKO's P/B has been as high as 3.65, as low as 1.86, with a median of 3.26 over the past 12 months.

These are just a handful of the figures considered in Ahold and ARKO'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 and ARKO is an impressive value stock right now.


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