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Is ARKO (ARKO) Stock Undervalued 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is ARKO (ARKO - Free Report) . ARKO is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 10.69. This compares to its industry's average Forward P/E of 18.06. Over the last 12 months, ARKO's Forward P/E has been as high as 74.25 and as low as 10.53, with a median of 24.25.

Another notable valuation metric for ARKO is its P/B ratio of 2.45. The P/B ratio pits a stock's market value against 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 4.08. Within the past 52 weeks, ARKO's P/B has been as high as 3.65 and as low as 1.86, with a median of 3.24.

These figures are just a handful of the metrics value investors tend to look at, but they help show that ARKO is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ARKO feels like a great value stock at the moment.


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