Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 Daimler AG . DDAIF is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 6.74, which compares to its industry's average of 13.40. Over the last 12 months, DDAIF's Forward P/E has been as high as 22.98 and as low as 6.14, with a median of 8.42.
DDAIF is also sporting a PEG ratio of 0.41. 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. DDAIF's PEG compares to its industry's average PEG of 0.84. Within the past year, DDAIF's PEG has been as high as 2.41 and as low as 0.40, with a median of 1.10.
We should also highlight that DDAIF has a P/B ratio of 1.23. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. DDAIF's current P/B looks attractive when compared to its industry's average P/B of 1.40. Over the past year, DDAIF's P/B has been as high as 1.33 and as low as 0.60, with a median of 1.06.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. DDAIF has a P/S ratio of 0.53. This compares to its industry's average P/S of 0.57.
Finally, investors will want to recognize that DDAIF has a P/CF ratio of 5.06. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.63. DDAIF's P/CF has been as high as 7.64 and as low as 4.53, with a median of 5.78, all within the past year.
These are just a handful of the figures considered in Daimler AG'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 DDAIF is an impressive value stock right now.
Image: Bigstock
Is Daimler AG (DDAIF) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 Daimler AG . DDAIF is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 6.74, which compares to its industry's average of 13.40. Over the last 12 months, DDAIF's Forward P/E has been as high as 22.98 and as low as 6.14, with a median of 8.42.
DDAIF is also sporting a PEG ratio of 0.41. 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. DDAIF's PEG compares to its industry's average PEG of 0.84. Within the past year, DDAIF's PEG has been as high as 2.41 and as low as 0.40, with a median of 1.10.
We should also highlight that DDAIF has a P/B ratio of 1.23. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. DDAIF's current P/B looks attractive when compared to its industry's average P/B of 1.40. Over the past year, DDAIF's P/B has been as high as 1.33 and as low as 0.60, with a median of 1.06.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. DDAIF has a P/S ratio of 0.53. This compares to its industry's average P/S of 0.57.
Finally, investors will want to recognize that DDAIF has a P/CF ratio of 5.06. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.63. DDAIF's P/CF has been as high as 7.64 and as low as 4.53, with a median of 5.78, all within the past year.
These are just a handful of the figures considered in Daimler AG'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 DDAIF is an impressive value stock right now.