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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Lear (LEA - Free Report) . LEA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.49, while its industry has an average P/E of 19.28. Over the last 12 months, LEA's Forward P/E has been as high as 15.28 and as low as 9.10, with a median of 10.66.
Another valuation metric that we should highlight is LEA's P/B ratio of 1.74. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.50. Over the past 12 months, LEA's P/B has been as high as 2.04 and as low as 1.40, with a median of 1.69.
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. LEA has a P/S ratio of 0.4. This compares to its industry's average P/S of 0.81.
Investors could also keep in mind Magna International (MGA - Free Report) , an Automotive - Original Equipment stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Magna International is currently trading with a Forward P/E ratio of 10.11 while its PEG ratio sits at 0.49. Both of the company's metrics compare favorably to its industry's average P/E of 19.28 and average PEG ratio of 0.92.
MGA's price-to-earnings ratio has been as high as 13.10 and as low as 7.57, with a median of 9.89, while its PEG ratio has been as high as 0.83 and as low as 0.42, with a median of 0.53, all within the past year.
Magna International sports a P/B ratio of 1.45 as well; this compares to its industry's price-to-book ratio of 3.50. In the past 52 weeks, MGA's P/B has been as high as 1.71, as low as 1.20, with a median of 1.42.
These are only a few of the key metrics included in Lear and Magna International strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, LEA and MGA look like an impressive value stock at the moment.
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Is Lear (LEA) Stock Undervalued 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Lear (LEA - Free Report) . LEA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.49, while its industry has an average P/E of 19.28. Over the last 12 months, LEA's Forward P/E has been as high as 15.28 and as low as 9.10, with a median of 10.66.
Another valuation metric that we should highlight is LEA's P/B ratio of 1.74. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.50. Over the past 12 months, LEA's P/B has been as high as 2.04 and as low as 1.40, with a median of 1.69.
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. LEA has a P/S ratio of 0.4. This compares to its industry's average P/S of 0.81.
Investors could also keep in mind Magna International (MGA - Free Report) , an Automotive - Original Equipment stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Magna International is currently trading with a Forward P/E ratio of 10.11 while its PEG ratio sits at 0.49. Both of the company's metrics compare favorably to its industry's average P/E of 19.28 and average PEG ratio of 0.92.
MGA's price-to-earnings ratio has been as high as 13.10 and as low as 7.57, with a median of 9.89, while its PEG ratio has been as high as 0.83 and as low as 0.42, with a median of 0.53, all within the past year.
Magna International sports a P/B ratio of 1.45 as well; this compares to its industry's price-to-book ratio of 3.50. In the past 52 weeks, MGA's P/B has been as high as 1.71, as low as 1.20, with a median of 1.42.
These are only a few of the key metrics included in Lear and Magna International strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, LEA and MGA look like an impressive value stock at the moment.