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Should Value Investors Buy Subaru Corporation (FUJHY) Stock?
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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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Subaru Corporation (FUJHY - Free Report) is a stock many investors are watching right now. FUJHY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.55. This compares to its industry's average Forward P/E of 9.87. FUJHY's Forward P/E has been as high as 8.20 and as low as 5.29, with a median of 6.74, all within the past year.
FUJHY is also sporting a PEG ratio of 0.27. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. FUJHY's industry currently sports an average PEG of 0.53. Over the past 52 weeks, FUJHY's PEG has been as high as 0.50 and as low as 0.21, with a median of 0.28.
Investors should also recognize that FUJHY has a P/B ratio of 1.05. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. FUJHY's current P/B looks attractive when compared to its industry's average P/B of 1.65. Within the past 52 weeks, FUJHY's P/B has been as high as 1.07 and as low as 0.76, with a median of 0.87.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FUJHY has a P/S ratio of 0.53. This compares to its industry's average P/S of 0.93.
Finally, investors should note that FUJHY has a P/CF ratio of 4.08. 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. FUJHY's current P/CF looks attractive when compared to its industry's average P/CF of 8.27. FUJHY's P/CF has been as high as 4.50 and as low as 3.30, with a median of 3.84, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Subaru Corporation is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FUJHY feels like a great value stock at the moment.
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Should Value Investors Buy Subaru Corporation (FUJHY) Stock?
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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Subaru Corporation (FUJHY - Free Report) is a stock many investors are watching right now. FUJHY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.55. This compares to its industry's average Forward P/E of 9.87. FUJHY's Forward P/E has been as high as 8.20 and as low as 5.29, with a median of 6.74, all within the past year.
FUJHY is also sporting a PEG ratio of 0.27. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. FUJHY's industry currently sports an average PEG of 0.53. Over the past 52 weeks, FUJHY's PEG has been as high as 0.50 and as low as 0.21, with a median of 0.28.
Investors should also recognize that FUJHY has a P/B ratio of 1.05. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. FUJHY's current P/B looks attractive when compared to its industry's average P/B of 1.65. Within the past 52 weeks, FUJHY's P/B has been as high as 1.07 and as low as 0.76, with a median of 0.87.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FUJHY has a P/S ratio of 0.53. This compares to its industry's average P/S of 0.93.
Finally, investors should note that FUJHY has a P/CF ratio of 4.08. 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. FUJHY's current P/CF looks attractive when compared to its industry's average P/CF of 8.27. FUJHY's P/CF has been as high as 4.50 and as low as 3.30, with a median of 3.84, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Subaru Corporation is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FUJHY feels like a great value stock at the moment.