Back to top

Image: Bigstock

Is Stellantis (STLA) Stock Undervalued Right Now?

Read MoreHide Full Article

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 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 stock to keep an eye on is Stellantis (STLA - Free Report) . STLA is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.

We also note that STLA holds a PEG ratio of 0.81. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. STLA's PEG compares to its industry's average PEG of 1.19. Over the last 12 months, STLA's PEG has been as high as 4.42 and as low as 0.74, with a median of 1.86.

Finally, we should also recognize that STLA has a P/CF ratio of 4.02. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. STLA's P/CF compares to its industry's average P/CF of 4.93. Over the past 52 weeks, STLA's P/CF has been as high as 4.75 and as low as 0.74, with a median of 3.27.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Stellantis is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, STLA 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:


Stellantis N.V. (STLA) - free report >>

Published in