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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
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.
One company to watch right now is ARKO (ARKO - Free Report) . ARKO 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 12.38, which compares to its industry's average of 17.06. Over the past year, 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 2.80. The P/B is a method of comparing a stock's market value to 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 4.02. Over the past 12 months, ARKO's P/B has been as high as 3.62 and as low as 1.86, with a median of 3.12.
Finally, investors should note that ARKO has a P/CF ratio of 4.58. 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. ARKO's current P/CF looks attractive when compared to its industry's average P/CF of 18.27. Over the past 52 weeks, ARKO's P/CF has been as high as 6.24 and as low as 3.04, with a median of 4.70.
Value investors will likely look at more than just these metrics, but the above data helps show that ARKO is likely undervalued currently. And when considering the strength of its earnings outlook, ARKO sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing ARKO (ARKO) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
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.
One company to watch right now is ARKO (ARKO - Free Report) . ARKO 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 12.38, which compares to its industry's average of 17.06. Over the past year, 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 2.80. The P/B is a method of comparing a stock's market value to 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 4.02. Over the past 12 months, ARKO's P/B has been as high as 3.62 and as low as 1.86, with a median of 3.12.
Finally, investors should note that ARKO has a P/CF ratio of 4.58. 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. ARKO's current P/CF looks attractive when compared to its industry's average P/CF of 18.27. Over the past 52 weeks, ARKO's P/CF has been as high as 6.24 and as low as 3.04, with a median of 4.70.
Value investors will likely look at more than just these metrics, but the above data helps show that ARKO is likely undervalued currently. And when considering the strength of its earnings outlook, ARKO sticks out at as one of the market's strongest value stocks.