Should Value Investors Buy ARKO (ARKO) Stock?

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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 stock to keep an eye on is ARKO (ARKO Quick QuoteARKO – Free Report) . ARKO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Another valuation metric that we should highlight is ARKO’s P/B ratio of 2.72. The P/B ratio pits a stock’s market value against its book value, which is defined as total assets minus total liabilities. This stock’s P/B looks solid versus its industry’s average P/B of 5.21. ARKO’s P/B has been as high as 3.54 and as low as 1.86, with a median of 2.73, over the past year.

Finally, investors will want to recognize that ARKO has a P/CF ratio of 5.32. 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. This company’s current P/CF looks solid when compared to its industry’s average P/CF of 15.68. Over the past 52 weeks, ARKO’s P/CF has been as high as 6.24 and as low as 3.04, with a median of 4.75.

These are just a handful of the figures considered in ARKO’s great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ARKO is an impressive value stock right now.