Core Insights - The Zacks Rank system emphasizes earnings estimates and revisions to identify winning stocks, while also considering trends in value, growth, and momentum for strong investment picks [1][2] Company Analysis - Alliance Resource Partners (ARLP) is currently rated with a Zacks Rank of 2 (Buy) and has an A rating for Value, indicating it is a strong candidate for value investing [4] - ARLP has a P/E ratio of 9.28, which is lower than the industry average of 10.22, suggesting it may be undervalued [4] - Over the past 12 months, ARLP's Forward P/E has fluctuated between a high of 11.04 and a low of 6.67, with a median of 9.31, indicating variability in market perception [4] - The company has a P/CF ratio of 5.83, significantly lower than the industry average of 9.53, further supporting the notion of undervaluation based on cash flow [5] - ARLP's P/CF has ranged from a high of 6.90 to a low of 3.82 over the last year, with a median of 5.55, reflecting its strong cash flow outlook [5] - Overall, ARLP's strong Value grade and positive earnings outlook position it as an attractive value stock at this time [6]
Should Value Investors Buy Alliance Resource Partners (ARLP) Stock?