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Is Ahold NV (ADRNY) a Great Value Stock Right Now?

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.

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

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.

One company value investors might notice is Ahold NV (ADRNY). ADRNY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 11.54, while its industry has an average P/E of 22.63. ADRNY's Forward P/E has been as high as 14.69 and as low as 10.77, with a median of 13.03, all within the past year.

Finally, our model also underscores that ADRNY has a P/CF ratio of 4.94. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. ADRNY's P/CF compares to its industry's average P/CF of 11.57. Within the past 12 months, ADRNY's P/CF has been as high as 7.35 and as low as 4.62, with a median of 5.69.

Value investors will likely look at more than just these metrics, but the above data helps show that Ahold NV is likely undervalued currently. And when considering the strength of its earnings outlook, ADRNY sticks out at as one of the market's strongest value stocks.


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