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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Fiat Chrysler is a stock many investors are watching right now. FCAU is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 4.15 right now. For comparison, its industry sports an average P/E of 9.38. Over the past year, FCAU's Forward P/E has been as high as 6 and as low as 4.02, with a median of 4.87.
Investors should also recognize that FCAU has a P/B ratio of 0.75. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. FCAU's current P/B looks attractive when compared to its industry's average P/B of 0.83. Over the past year, FCAU's P/B has been as high as 1.11 and as low as 0.73, with a median of 0.89.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FCAU has a P/S ratio of 0.19. This compares to its industry's average P/S of 0.35.
Finally, our model also underscores that FCAU has a P/CF ratio of 2.11. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. FCAU's P/CF compares to its industry's average P/CF of 4.53. Over the past 52 weeks, FCAU's P/CF has been as high as 2.91 and as low as 2, with a median of 2.28.
Value investors will likely look at more than just these metrics, but the above data helps show that Fiat Chrysler is likely undervalued currently. And when considering the strength of its earnings outlook, FCAU sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Fiat Chrysler (FCAU) Right Now?
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Fiat Chrysler is a stock many investors are watching right now. FCAU is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 4.15 right now. For comparison, its industry sports an average P/E of 9.38. Over the past year, FCAU's Forward P/E has been as high as 6 and as low as 4.02, with a median of 4.87.
Investors should also recognize that FCAU has a P/B ratio of 0.75. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. FCAU's current P/B looks attractive when compared to its industry's average P/B of 0.83. Over the past year, FCAU's P/B has been as high as 1.11 and as low as 0.73, with a median of 0.89.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FCAU has a P/S ratio of 0.19. This compares to its industry's average P/S of 0.35.
Finally, our model also underscores that FCAU has a P/CF ratio of 2.11. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. FCAU's P/CF compares to its industry's average P/CF of 4.53. Over the past 52 weeks, FCAU's P/CF has been as high as 2.91 and as low as 2, with a median of 2.28.
Value investors will likely look at more than just these metrics, but the above data helps show that Fiat Chrysler is likely undervalued currently. And when considering the strength of its earnings outlook, FCAU sticks out at as one of the market's strongest value stocks.