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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 value investors might notice is Lear (LEA - Free Report) . LEA is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 10.03 right now. For comparison, its industry sports an average P/E of 19.53. Over the past year, LEA's Forward P/E has been as high as 24.56 and as low as 9.41, with a median of 11.04.
Investors should also recognize that LEA has a P/B ratio of 1.57. 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 3.20. LEA's P/B has been as high as 2.39 and as low as 1.49, with a median of 2.01, 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. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. LEA has a P/S ratio of 0.39. This compares to its industry's average P/S of 0.66.
Finally, investors should note that LEA has a P/CF ratio of 9.58. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. LEA's current P/CF looks attractive when compared to its industry's average P/CF of 17.87. Over the past year, LEA's P/CF has been as high as 12.27 and as low as 6.69, with a median of 9.52.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Lear is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LEA feels like a great value stock at the moment.
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Is Lear (LEA) a Great Value Stock 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 value investors might notice is Lear (LEA - Free Report) . LEA is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 10.03 right now. For comparison, its industry sports an average P/E of 19.53. Over the past year, LEA's Forward P/E has been as high as 24.56 and as low as 9.41, with a median of 11.04.
Investors should also recognize that LEA has a P/B ratio of 1.57. 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 3.20. LEA's P/B has been as high as 2.39 and as low as 1.49, with a median of 2.01, 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. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. LEA has a P/S ratio of 0.39. This compares to its industry's average P/S of 0.66.
Finally, investors should note that LEA has a P/CF ratio of 9.58. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. LEA's current P/CF looks attractive when compared to its industry's average P/CF of 17.87. Over the past year, LEA's P/CF has been as high as 12.27 and as low as 6.69, with a median of 9.52.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Lear is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LEA feels like a great value stock at the moment.