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Should Value Investors Buy Marubeni (MARUY) Stock?
September 06, 2024

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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 Marubeni (MARUY - Free Report) . MARUY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 7.88 right now. For comparison, its industry sports an average P/E of 14.66. MARUY's Forward P/E has been as high as 10.69 and as low as 7, with a median of 8.92, all within the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MARUY has a P/S ratio of 0.57. This compares to its industry's average P/S of 1.11.

Finally, investors should note that MARUY has a P/CF ratio of 6.24. 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 current P/CF looks attractive when compared to its industry's average P/CF of 14.74. 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.

These are just a handful of the figures considered in Marubeni'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 MARUY is an impressive value stock right now.




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