While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.
A P MOLLAR-MRSK (AMKBY) is a stock many investors are watching right now. AMKBY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 21.20, while its industry has an average P/E of 24.62. Over the past 52 weeks, AMKBY's Forward P/E has been as high as 26.41 and as low as 12.02, with a median of 16.14.
Investors will also notice that AMKBY has a PEG ratio of 2.27. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AMKBY's industry currently sports an average PEG of 3.49. Over the past 52 weeks, AMKBY's PEG has been as high as 2.29 and as low as 1.74, with a median of 1.95.
We should also highlight that AMKBY has a P/B ratio of 0.50. 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 1.06. Over the past year, AMKBY's P/B has been as high as 0.64 and as low as 0.38, with a median of 0.52.
Finally, investors will want to recognize that AMKBY has a P/CF ratio of 6.26. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 20.83. Within the past 12 months, AMKBY's P/CF has been as high as 22.03 and as low as 4.79, with a median of 8.35.
Value investors will likely look at more than just these metrics, but the above data helps show that A P MOLLAR-MRSK is likely undervalued currently. And when considering the strength of its earnings outlook, AMKBY sticks out at as one of the market's strongest value stocks.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.