Are Aramark (ARMK Stocks Undervalued Right Now
Zacks focuses on its proven ranking system. It places emphasis on earnings estimates, revisions, and other factors to help us find winners. We also know that investors create their own strategies so we constantly monitor the latest trends in value and growth to identify strong companies for our readers.
Value investing is perhaps the most beloved of all these trends based on its history. This strategy simply identifies companies that are undervalued by broader markets. Value investors rely on traditional methods of analysis that use key valuation metrics to locate stocks that they believe are undervalued. They also make room for profits.
Zacks’ innovative Style Scores system highlights stocks with certain traits. Value investors will be attracted to stocks that have high “Value” grades. Pairing a high Zacks Rank with “A” grades in Value will make you one of the most valuable stocks on the market.
One company you should be following right now is Aramark, ARMK. ARMK currently has a Zacks Rank #2 (Buy) and an A-grade for Value.
Investors should also be aware that ARMK’s PEG ratio is 0.77. This popular metric is very similar to the well-known P/E ratio. However, the PEG ratio also considers the company’s expected earnings growth rate. The average industry PEG for ARMK is 2.17. ARMK’s industry has seen its PEG fluctuate between 0.81 and 0.42 over the past 12 months with a median value of 0.58.
The P/S ratio is also used by value investors. The P/S ratio can be calculated by dividing sales price. This is a very popular indicator of performance because it’s harder to manipulate sales on an income statement. ARMK’s P/S ratio is 0.69. This is in comparison to 0.99 for the industry average P/S.
Our model also shows that ARMK has a 15.73 P/CF ratio. This metric considers a company’s operating cash flow. It can be used to identify stocks that are undervalued based upon their solid cash outlook. ARMK’s P/CF is lower than the industry average of 19.55. Over the last 52 weeks, ARMK has had a P/CF as high as 17.07, and as low at 10.96, with a median value of 13.81.
Another excellent Food – Miscellaneous stock that you might consider is MamaMancini’s Holdings – MMMBThis stock is a #2 (Buy), with a Value Score score of A.
MamaMancini’s Holdings has a P/B of 6.99, compared to 2.33 in the industry. Its P/B ratio over the past year has varied between 8.73 and 3.48 with a median of 6.19.
These metrics are not the only thing value investors will consider, but they do show that MamaMancini’s Holdings and Aramark are likely undervalued at present. ARMK and MMMB are the strongest value stocks in the market, especially when you consider the strength of its earnings outlook.
Get the most recent Zacks Investment Research recommendations. You can now download 7 Best Stocks to Watch in the Next 30 days. Click to get this free report
Aramark (ARMK) : Free Stock Analysis Report
Mamamancini’S Holdings, Inc. (MMMB) : Free Stock Analysis Report
To read this article on Zacks.com click here.