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Are Investors Undervaluing Marubeni (MARUY) Right Now?

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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 value investors might notice is Marubeni (MARUY - Free Report) . MARUY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.25. This compares to its industry's average Forward P/E of 15.92. Over the past year, MARUY's Forward P/E has been as high as 10.69 and as low as 7, with a median of 9.05.

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. MARUY has a P/S ratio of 0.58. This compares to its industry's average P/S of 1.06.

Finally, investors should note that MARUY has a P/CF ratio of 6.52. 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. MARUY's current P/CF looks attractive when compared to its industry's average P/CF of 11.82. MARUY's P/CF has been as high as 7.54 and as low as 5.29, with a median of 6.28, all within the past year.

These are only a few of the key metrics included in Marubeni'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, MARUY looks like an impressive value stock at the moment.


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