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Should Value Investors Buy Stellantis (STLA) Stock?

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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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

Stellantis (STLA - Free Report) is a stock many investors are watching right now. STLA is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 3.37, while its industry has an average P/E of 8.89. Over the past year, STLA's Forward P/E has been as high as 4.28 and as low as 2.64, with a median of 3.40.

We should also highlight that STLA has a P/B ratio of 0.66. 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. This company's current P/B looks solid when compared to its industry's average P/B of 1.33. Within the past 52 weeks, STLA's P/B has been as high as 0.77 and as low as 0.53, with a median of 0.67.

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


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