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Should Value Investors Buy Nissan Motor Co. (NSANY) Stock?

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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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Nissan Motor Co. (NSANY - Free Report) . NSANY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 5.85. This compares to its industry's average Forward P/E of 9.01. Over the past 52 weeks, NSANY's Forward P/E has been as high as 13.36 and as low as 5.18, with a median of 6.33.

Investors should also note that NSANY holds a PEG ratio of 0.20. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NSANY's industry currently sports an average PEG of 0.34. Over the past 52 weeks, NSANY's PEG has been as high as 0.61 and as low as 0.18, with a median of 0.24.

Finally, our model also underscores that NSANY has a P/CF ratio of 1.90. 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. NSANY's P/CF compares to its industry's average P/CF of 6.97. Over the past year, NSANY's P/CF has been as high as 2.67 and as low as 1.82, with a median of 2.18.

Value investors will likely look at more than just these metrics, but the above data helps show that Nissan Motor Co. Is likely undervalued currently. And when considering the strength of its earnings outlook, NSANY sticks out at as one of the market's strongest value stocks.


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