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Is American Axle & Manufacturing Holdings (AXL) Stock Undervalued Right Now?
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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, 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 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 a Value grade of A. The stock holds a P/E ratio of 11.19, while its industry has an average P/E of 14.33. Over the past 52 weeks, AXL's Forward P/E has been as high as 36.52 and as low as -50.32, with a median of 16.16.
Investors should also recognize that AXL has a P/B ratio of 1.36. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.89. AXL's P/B has been as high as 1.73 and as low as 1.22, with a median of 1.39, over the past year.
Dana (DAN - Free Report) may be another strong Automotive - Original Equipment stock to add to your shortlist. DAN is a # 2 (Buy) stock with a Value grade of A.
Dana is trading at a forward earnings multiple of 8.18 at the moment, with a PEG ratio of 0.27. This compares to its industry's average P/E of 14.33 and average PEG ratio of 0.77.
Over the past year, DAN's P/E has been as high as 18.77, as low as 7.74, with a median of 10.54; its PEG ratio has been as high as 0.34, as low as 0.26, with a median of 2.30 during the same time period.
Additionally, Dana has a P/B ratio of 1.08 while its industry's price-to-book ratio sits at 1.89. For DAN, this valuation metric has been as high as 1.65, as low as 0.99, with a median of 1.20 over the past year.
These are just a handful of the figures considered in American Axle & Manufacturing Holdings and Dana'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 DAN is an impressive value stock right now.
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Is American Axle & Manufacturing Holdings (AXL) Stock Undervalued Right Now?
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, 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 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 a Value grade of A. The stock holds a P/E ratio of 11.19, while its industry has an average P/E of 14.33. Over the past 52 weeks, AXL's Forward P/E has been as high as 36.52 and as low as -50.32, with a median of 16.16.
Investors should also recognize that AXL has a P/B ratio of 1.36. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.89. AXL's P/B has been as high as 1.73 and as low as 1.22, with a median of 1.39, over the past year.
Dana (DAN - Free Report) may be another strong Automotive - Original Equipment stock to add to your shortlist. DAN is a # 2 (Buy) stock with a Value grade of A.
Dana is trading at a forward earnings multiple of 8.18 at the moment, with a PEG ratio of 0.27. This compares to its industry's average P/E of 14.33 and average PEG ratio of 0.77.
Over the past year, DAN's P/E has been as high as 18.77, as low as 7.74, with a median of 10.54; its PEG ratio has been as high as 0.34, as low as 0.26, with a median of 2.30 during the same time period.
Additionally, Dana has a P/B ratio of 1.08 while its industry's price-to-book ratio sits at 1.89. For DAN, this valuation metric has been as high as 1.65, as low as 0.99, with a median of 1.20 over the past year.
These are just a handful of the figures considered in American Axle & Manufacturing Holdings and Dana'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 DAN is an impressive value stock right now.