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Is Stellantis (STLA) a Great Value Stock Right Now?

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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.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is Stellantis (STLA - Free Report) . STLA is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 5.52, while its industry has an average P/E of 13.12. Over the past year, STLA's Forward P/E has been as high as 445.24 and as low as 4.38, with a median of 6.35.

Investors will also notice that STLA has 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 industry has an average PEG of 1.02 right now. Over the past 52 weeks, STLA's PEG has been as high as 4.42 and as low as 0.74, with a median of 3.10.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. STLA has a P/S ratio of 0.41. This compares to its industry's average P/S of 0.58.

Finally, we should also recognize that STLA has a P/CF ratio of 5.36. 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 6.42. Over the past 52 weeks, STLA's P/CF has been as high as 5.36 and as low as 1.27, with a median of 4.22.

These are only a few of the key metrics included in Stellantis's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, STLA looks like an impressive value stock at the moment.


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