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Should Value Investors Buy Stellantis (STLA) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

Stellantis (STLA - Free Report) is a stock many investors are watching right now. STLA is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 5.02, while its industry has an average P/E of 11.60. Over the past year, STLA's Forward P/E has been as high as 6.67 and as low as 4.38, with a median of 5.27.

We should also highlight that STLA has a P/B ratio of 0.74. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.16. Over the past year, STLA's P/B has been as high as 1.46 and as low as 0.64, with a median of 1.10.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. STLA has a P/S ratio of 0.41. This compares to its industry's average P/S of 0.57.

Finally, investors will want to recognize that STLA has a P/CF ratio of 5.47. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.73. Over the past 52 weeks, STLA's P/CF has been as high as 5.84 and as low as 3.75, with a median of 4.90.

These are only a few of the key metrics included in Stellantis N.V.'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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