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Should Value Investors Buy These Auto-Tires-Trucks Stocks?
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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 Ford Motor (F - Free Report) . F is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. F has a P/S ratio of 0.61. This compares to its industry's average P/S of 0.96.
Finally, our model also underscores that F has a P/CF ratio of 9.67. 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 26.13. Over the past 52 weeks, F's P/CF has been as high as 11.25 and as low as 4.10, with a median of 6.31.
If you're looking for another solid Automotive - Domestic value stock, take a look at General Motors (GM - Free Report) . GM is a # 2 (Buy) stock with a Value score of A.
Shares of General Motors currently holds a Forward P/E ratio of 8.11, and its PEG ratio is 0.82. In comparison, its industry sports average P/E and PEG ratios of 61.01 and 2.47.
Over the past year, GM's P/E has been as high as 11.52, as low as 7.38, with a median of 9.07; its PEG ratio has been as high as 1.17, as low as 0.75, with a median of 0.45 during the same time period.
Furthermore, General Motors holds a P/B ratio of 1.32 and its industry's price-to-book ratio is 8.17. GM's P/B has been as high as 1.74, as low as 1.21, with a median of 1.48 over the past 12 months.
These are only a few of the key metrics included in Ford Motor and General Motors strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, F and GM look like an impressive value stock at the moment.
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Should Value Investors Buy These Auto-Tires-Trucks Stocks?
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 Ford Motor (F - Free Report) . F is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. F has a P/S ratio of 0.61. This compares to its industry's average P/S of 0.96.
Finally, our model also underscores that F has a P/CF ratio of 9.67. 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 26.13. Over the past 52 weeks, F's P/CF has been as high as 11.25 and as low as 4.10, with a median of 6.31.
If you're looking for another solid Automotive - Domestic value stock, take a look at General Motors (GM - Free Report) . GM is a # 2 (Buy) stock with a Value score of A.
Shares of General Motors currently holds a Forward P/E ratio of 8.11, and its PEG ratio is 0.82. In comparison, its industry sports average P/E and PEG ratios of 61.01 and 2.47.
Over the past year, GM's P/E has been as high as 11.52, as low as 7.38, with a median of 9.07; its PEG ratio has been as high as 1.17, as low as 0.75, with a median of 0.45 during the same time period.
Furthermore, General Motors holds a P/B ratio of 1.32 and its industry's price-to-book ratio is 8.17. GM's P/B has been as high as 1.74, as low as 1.21, with a median of 1.48 over the past 12 months.
These are only a few of the key metrics included in Ford Motor and General Motors strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, F and GM look like an impressive value stock at the moment.