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Are Investors Undervaluing Honda Motor (HMC) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is Honda Motor (HMC - Free Report) . HMC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 6.99. This compares to its industry's average Forward P/E of 7.71. Over the past year, HMC's Forward P/E has been as high as 10.05 and as low as 6.35, with a median of 8.36.
Another notable valuation metric for HMC is its P/B ratio of 0.62. The P/B ratio pits a stock's market value against 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 0.88. Within the past 52 weeks, HMC's P/B has been as high as 0.88 and as low as 0.58, with a median of 0.69.
Value investors will likely look at more than just these metrics, but the above data helps show that Honda Motor is likely undervalued currently. And when considering the strength of its earnings outlook, HMC sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Honda Motor (HMC) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is Honda Motor (HMC - Free Report) . HMC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 6.99. This compares to its industry's average Forward P/E of 7.71. Over the past year, HMC's Forward P/E has been as high as 10.05 and as low as 6.35, with a median of 8.36.
Another notable valuation metric for HMC is its P/B ratio of 0.62. The P/B ratio pits a stock's market value against 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 0.88. Within the past 52 weeks, HMC's P/B has been as high as 0.88 and as low as 0.58, with a median of 0.69.
Value investors will likely look at more than just these metrics, but the above data helps show that Honda Motor is likely undervalued currently. And when considering the strength of its earnings outlook, HMC sticks out at as one of the market's strongest value stocks.