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Are Investors Undervaluing Adams Resources & Energy (AE) 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.

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

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 Adams Resources & Energy (AE - Free Report) . AE is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

We should also highlight that AE has a P/B ratio of 0.75. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. AE's current P/B looks attractive when compared to its industry's average P/B of 2.04. Over the past year, AE's P/B has been as high as 1.03 and as low as 0.64, with a median of 0.81.

Finally, our model also underscores that AE has a P/CF ratio of 2.44. 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. AE's current P/CF looks attractive when compared to its industry's average P/CF of 5.95. AE's P/CF has been as high as 4.64 and as low as 2.13, with a median of 3.16, all within the past year.

These are only a few of the key metrics included in Adams Resources & Energy's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, AE looks like an impressive value stock at the moment.


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