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Is Matson (MATX) 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Matson (MATX - Free Report) is a stock many investors are watching right now. MATX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 13.84, while its industry has an average P/E of 17.17. Over the past 52 weeks, MATX's Forward P/E has been as high as 16.22 and as low as 11.68, with a median of 13.70.

We should also highlight that MATX has a P/B ratio of 1.84. 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. MATX's current P/B looks attractive when compared to its industry's average P/B of 2.94. Within the past 52 weeks, MATX's P/B has been as high as 1.89 and as low as 1.25, with a median of 1.60.

Finally, investors should note that MATX has a P/CF ratio of 7.31. 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. MATX's P/CF compares to its industry's average P/CF of 12.22. Over the past year, MATX's P/CF has been as high as 7.82 and as low as 3.99, with a median of 6.55.

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


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