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Is Alps Electric (APELY) a Great Value Stock 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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is Alps Electric (APELY - Free Report) . APELY 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 14.48, while its industry has an average P/E of 42.04. APELY's Forward P/E has been as high as 23.19 and as low as 8.48, with a median of 10.86, all within the past year.

Investors should also note that APELY holds a PEG ratio of 0.36. 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. APELY's PEG compares to its industry's average PEG of 0.89. Over the past 52 weeks, APELY's PEG has been as high as 5.16 and as low as 0.35, with a median of 1.18.

Another valuation metric that we should highlight is APELY's P/B ratio of 0.79. 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 attractive against its industry's average P/B of 2. Within the past 52 weeks, APELY's P/B has been as high as 0.83 and as low as 0.54, with a median of 0.61.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Alps Electric is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, APELY feels like a great value stock at the moment.


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