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Are Investors Undervaluing Volvo (VLVLY) 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Volvo (VLVLY - Free Report) . VLVLY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 9.31 right now. For comparison, its industry sports an average P/E of 12.41. VLVLY's Forward P/E has been as high as 13.47 and as low as 8.95, with a median of 10.83, all within the past year.
Investors should also note that VLVLY holds a PEG ratio of 0.56. 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. VLVLY's industry currently sports an average PEG of 0.68. Over the past 52 weeks, VLVLY's PEG has been as high as 0.81 and as low as 0.54, with a median of 0.65.
Finally, we should also recognize that VLVLY has a P/CF ratio of 6.66. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. VLVLY's current P/CF looks attractive when compared to its industry's average P/CF of 20.64. Over the past 52 weeks, VLVLY's P/CF has been as high as 9.10 and as low as 6.31, with a median of 7.49.
Value investors will likely look at more than just these metrics, but the above data helps show that Volvo is likely undervalued currently. And when considering the strength of its earnings outlook, VLVLY sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Volvo (VLVLY) 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Volvo (VLVLY - Free Report) . VLVLY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 9.31 right now. For comparison, its industry sports an average P/E of 12.41. VLVLY's Forward P/E has been as high as 13.47 and as low as 8.95, with a median of 10.83, all within the past year.
Investors should also note that VLVLY holds a PEG ratio of 0.56. 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. VLVLY's industry currently sports an average PEG of 0.68. Over the past 52 weeks, VLVLY's PEG has been as high as 0.81 and as low as 0.54, with a median of 0.65.
Finally, we should also recognize that VLVLY has a P/CF ratio of 6.66. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. VLVLY's current P/CF looks attractive when compared to its industry's average P/CF of 20.64. Over the past 52 weeks, VLVLY's P/CF has been as high as 9.10 and as low as 6.31, with a median of 7.49.
Value investors will likely look at more than just these metrics, but the above data helps show that Volvo is likely undervalued currently. And when considering the strength of its earnings outlook, VLVLY sticks out at as one of the market's strongest value stocks.