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Are These Auto-Tires-Trucks Stocks a Great Value Stocks Right Now?

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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.

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 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.

One company to watch right now is Suzuki Motor (SZKMY - Free Report) . SZKMY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 9.74. This compares to its industry's average Forward P/E of 10.76. Over the last 12 months, SZKMY's Forward P/E has been as high as 16.15 and as low as 9.74, with a median of 11.81.

Investors should also recognize that SZKMY has a P/B ratio of 0.99. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.02. Over the past year, SZKMY's P/B has been as high as 1.42 and as low as 0.97, with a median of 1.15.

Finally, investors should note that SZKMY has a P/CF ratio of 5.98. 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 stock's P/CF looks attractive against its industry's average P/CF of 6.05. SZKMY's P/CF has been as high as 10.30 and as low as 5.66, with a median of 7.27, all within the past year.

Yamaha Motor Co. (YAMHF - Free Report) may be another strong Automotive - Foreign stock to add to your shortlist. YAMHF is a # 1 (Strong Buy) stock with a Value grade of A.

Additionally, Yamaha Motor Co. has a P/B ratio of 1.07 while its industry's price-to-book ratio sits at 1.02. For YAMHF, this valuation metric has been as high as 1.43, as low as 0.99, with a median of 1.18 over the past year.

These are only a few of the key metrics included in Suzuki Motor and Yamaha Motor Co. strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, SZKMY and YAMHF look like an impressive value stock at the moment.


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Yamaha Motor Co., Ltd. (YAMHF) - free report >>

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