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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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). MARUY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 7.66, which compares to its industry's average of 15.22. Over the last 12 months, MARUY's Forward P/E has been as high as 10.69 and as low as 7, with a median of 8.84.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MARUY has a P/S ratio of 0.56. This compares to its industry's average P/S of 1.25.
Finally, investors should note that MARUY has a P/CF ratio of 6.20. 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. MARUY's P/CF compares to its industry's average P/CF of 15.17. MARUY's P/CF has been as high as 7.55 and as low as 5.29, with a median of 6.36, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Marubeni is likely undervalued currently. And when considering the strength of its earnings outlook, MARUY sticks out at as one of the market's strongest value stocks.
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Marubeni Corp. (MARUY) : Free Stock Analysis Report