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Are Investors Undervaluing Standard Motor Products (SMP) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Standard Motor Products (SMP - Free Report) . SMP is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 11.63, while its industry has an average P/E of 14.66. Over the past 52 weeks, SMP's Forward P/E has been as high as 16.16 and as low as 10.17, with a median of 12.78.
We should also highlight that SMP has a P/B ratio of 1.88. 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 2.99. SMP's P/B has been as high as 2.23 and as low as 1.53, with a median of 1.74, over the past year.
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. SMP has a P/S ratio of 0.89. This compares to its industry's average P/S of 1.51.
Finally, investors will want to recognize that SMP has a P/CF ratio of 10.37. 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 16.42. Within the past 12 months, SMP's P/CF has been as high as 14.36 and as low as 8.08, with a median of 10.36.
These are only a few of the key metrics included in Standard Motor Products'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, SMP looks like an impressive value stock at the moment.
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Are Investors Undervaluing Standard Motor Products (SMP) Right Now?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Standard Motor Products (SMP - Free Report) . SMP is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 11.63, while its industry has an average P/E of 14.66. Over the past 52 weeks, SMP's Forward P/E has been as high as 16.16 and as low as 10.17, with a median of 12.78.
We should also highlight that SMP has a P/B ratio of 1.88. 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 2.99. SMP's P/B has been as high as 2.23 and as low as 1.53, with a median of 1.74, over the past year.
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. SMP has a P/S ratio of 0.89. This compares to its industry's average P/S of 1.51.
Finally, investors will want to recognize that SMP has a P/CF ratio of 10.37. 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 16.42. Within the past 12 months, SMP's P/CF has been as high as 14.36 and as low as 8.08, with a median of 10.36.
These are only a few of the key metrics included in Standard Motor Products'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, SMP looks like an impressive value stock at the moment.