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Are Investors Undervaluing Dana (DAN) Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 value investors might notice is Dana (DAN - Free Report) . DAN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 5.32, while its industry has an average P/E of 9.86. Over the past 52 weeks, DAN's Forward P/E has been as high as 12.48 and as low as 4.07, with a median of 6.79.

Investors should also recognize that DAN has a P/B ratio of 1.82. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. DAN's current P/B looks attractive when compared to its industry's average P/B of 2.49. Over the past year, DAN's P/B has been as high as 4.49 and as low as 1.38, with a median of 2.41.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DAN has a P/S ratio of 0.32. This compares to its industry's average P/S of 0.41.

Finally, our model also underscores that DAN has a P/CF ratio of 5.30. 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. This stock's P/CF looks attractive against its industry's average P/CF of 6.09. Within the past 12 months, DAN's P/CF has been as high as 14.86 and as low as 4.01, with a median of 6.92.

These are just a handful of the figures considered in 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 DAN is an impressive value stock right now.


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