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Are Investors Undervaluing American Axle & Manufacturing Holdings (AXL) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company value investors might notice is American Axle & Manufacturing Holdings (AXL - Free Report) . AXL is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 14.79. This compares to its industry's average Forward P/E of 15.51. AXL's Forward P/E has been as high as 36.52 and as low as -50.32, with a median of 16.16, all within the past year.
We should also highlight that AXL has a P/B ratio of 1.42. 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 1.90. AXL's P/B has been as high as 1.73 and as low as 1.22, with a median of 1.42, over the past year.
BorgWarner (BWA - Free Report) may be another strong Automotive - Original Equipment stock to add to your shortlist. BWA is a # 2 (Buy) stock with a Value grade of A.
BorgWarner is trading at a forward earnings multiple of 8.05 at the moment, with a PEG ratio of 0.79. This compares to its industry's average P/E of 15.51 and average PEG ratio of 0.71.
BWA's Forward P/E has been as high as 10.16 and as low as 7.25, with a median of 8.57. During the same time period, its PEG ratio has been as high as 1.21, as low as 0.56, with a median of 0.85.
Additionally, BorgWarner has a P/B ratio of 1.31 while its industry's price-to-book ratio sits at 1.90. For BWA, this valuation metric has been as high as 1.56, as low as 1.14, with a median of 1.31 over the past year.
These are just a handful of the figures considered in American Axle & Manufacturing Holdings and BorgWarner's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that AXL and BWA is an impressive value stock right now.
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Are Investors Undervaluing American Axle & Manufacturing Holdings (AXL) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company value investors might notice is American Axle & Manufacturing Holdings (AXL - Free Report) . AXL is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 14.79. This compares to its industry's average Forward P/E of 15.51. AXL's Forward P/E has been as high as 36.52 and as low as -50.32, with a median of 16.16, all within the past year.
We should also highlight that AXL has a P/B ratio of 1.42. 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 1.90. AXL's P/B has been as high as 1.73 and as low as 1.22, with a median of 1.42, over the past year.
BorgWarner (BWA - Free Report) may be another strong Automotive - Original Equipment stock to add to your shortlist. BWA is a # 2 (Buy) stock with a Value grade of A.
BorgWarner is trading at a forward earnings multiple of 8.05 at the moment, with a PEG ratio of 0.79. This compares to its industry's average P/E of 15.51 and average PEG ratio of 0.71.
BWA's Forward P/E has been as high as 10.16 and as low as 7.25, with a median of 8.57. During the same time period, its PEG ratio has been as high as 1.21, as low as 0.56, with a median of 0.85.
Additionally, BorgWarner has a P/B ratio of 1.31 while its industry's price-to-book ratio sits at 1.90. For BWA, this valuation metric has been as high as 1.56, as low as 1.14, with a median of 1.31 over the past year.
These are just a handful of the figures considered in American Axle & Manufacturing Holdings and BorgWarner's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that AXL and BWA is an impressive value stock right now.