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Is The Timken Company (TKR) a Great Value Stock 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 The Timken Company (TKR - Free Report) . TKR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

We also note that TKR holds a PEG ratio of 0.93. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TKR's industry currently sports an average PEG of 1.07. TKR's PEG has been as high as 1.08 and as low as 0.76, with a median of 0.91, all within the past year.

Investors should also recognize that TKR has a P/B ratio of 2.42. 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 4.40. Over the past 12 months, TKR's P/B has been as high as 2.74 and as low as 1.63, with a median of 2.19.

These figures are just a handful of the metrics value investors tend to look at, but they help show that The Timken Company is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TKR feels like a great value stock at the moment.


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