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Is Standard Motor Products (SMP) Stock Undervalued 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 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.
One stock to keep an eye on is Standard Motor Products (SMP - Free Report) . SMP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 11.56, while its industry has an average P/E of 14.35. Over the past 52 weeks, SMP's Forward P/E has been as high as 16.16 and as low as 10.17, with a median of 12.50.
We should also highlight that SMP has a P/B ratio of 1.88. Investors use the P/B ratio to look at a stock's market value versus 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 2.97. Within the past 52 weeks, SMP's P/B has been as high as 2.01 and as low as 1.53, with a median of 1.75.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SMP has a P/S ratio of 0.9. This compares to its industry's average P/S of 1.47.
Finally, investors should note that SMP has a P/CF ratio of 10.34. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. SMP's current P/CF looks attractive when compared to its industry's average P/CF of 16.31. Over the past 52 weeks, SMP's P/CF has been as high as 11.87 and as low as 8.08, with a median of 10.29.
Value investors will likely look at more than just these metrics, but the above data helps show that Standard Motor Products is likely undervalued currently. And when considering the strength of its earnings outlook, SMP sticks out at as one of the market's strongest value stocks.
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Is Standard Motor Products (SMP) Stock Undervalued 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.
One stock to keep an eye on is Standard Motor Products (SMP - Free Report) . SMP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 11.56, while its industry has an average P/E of 14.35. Over the past 52 weeks, SMP's Forward P/E has been as high as 16.16 and as low as 10.17, with a median of 12.50.
We should also highlight that SMP has a P/B ratio of 1.88. Investors use the P/B ratio to look at a stock's market value versus 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 2.97. Within the past 52 weeks, SMP's P/B has been as high as 2.01 and as low as 1.53, with a median of 1.75.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SMP has a P/S ratio of 0.9. This compares to its industry's average P/S of 1.47.
Finally, investors should note that SMP has a P/CF ratio of 10.34. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. SMP's current P/CF looks attractive when compared to its industry's average P/CF of 16.31. Over the past 52 weeks, SMP's P/CF has been as high as 11.87 and as low as 8.08, with a median of 10.29.
Value investors will likely look at more than just these metrics, but the above data helps show that Standard Motor Products is likely undervalued currently. And when considering the strength of its earnings outlook, SMP sticks out at as one of the market's strongest value stocks.