Back to top

Image: Bigstock

Is Aisin Seiki Co. Ltd. Unsponsored ADR (ASEKY) a Great Value Stock Right Now?

Read MoreHide Full Article

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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

Aisin Seiki Co. Ltd. Unsponsored ADR (ASEKY - Free Report) is a stock many investors are watching right now. ASEKY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 13.77. This compares to its industry's average Forward P/E of 19.15. ASEKY's Forward P/E has been as high as 66.93 and as low as 6.56, with a median of 13.88, all within the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ASEKY has a P/S ratio of 0.29. This compares to its industry's average P/S of 0.5.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Aisin Seiki Co. Ltd. Unsponsored ADR is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ASEKY feels like a great value stock at the moment.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Aisin Seiki Co. Ltd. Unsponsored ADR (ASEKY) - free report >>

Published in