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3 Foreign Stocks for Value & Growth Investors to Buy Now
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For some investors, the search for undervalued stocks can be paramount. But on top of this, investors want stocks that have the potential to outperform the market in the near term.
To accomplish this, investors look at several key valuation metrics. For example, a low P/E ratio is one of the more common value-based metrics that investors tend to keep their eyes on. On top of that, other value-focused stats, such as the P/S ratio, must be taken into consideration.
Still, along with value, investors often want to buy companies that are set to grow at an impressive rate. And this is where pairing basic value and growth metrics with strong Zacks Rank stocks can come in handy.
Today, we’ll look at three foreign companies, which are household names in many parts of the world, that are currently sporting a Zacks Rank #1 (Strong Buy), as well as value and growth metrics that might prove enticing for investors.
This German automotive powerhouse is the parent company of three of the most recognizable and iconic auto brands: BMW, MINI, and Rolls-Royce. The firm boasts a “B” grade for Value and an “A” for Momentum in our Style Scores system, helping it earn an overall VGM grade of “A.”
With a current P/E ratio of 7.44, which beats the “Automotive – Foreign” industry average of 8.15, BAMXF is trading far below the S&P 500 average. The company’s P/S ratio of 0.57 and 1.15 P/B ratio are both strong. BAMXF’s Cash Flow per share of 21.81 crushes the industry average of 6.13, while its Price/Cash Flow ratio of 4.61 also presents value compared to the industry’s 5.43 ratio.
After seeing its stock price pop 21.89% over the last year, which outpaced the industry average of 13.37%, the company is set to keep growing. Based on our current consensus estimates, the company’s sales are set to jump 12.41% for the year to hit $117.16 billion. Also, the auto giant’s earnings are projected to pop 17.46% this year.
Deutsche Lufthansa is another German giant that helps people get from point A to B. The company operates within the Lufthansa Group and is the largest German airline. Its shares have soared 111.14% since the start of the year, which is far above “Transportation – Airline” industry average of 12%.
Lufthansa currently rocks “A” grades for Value, Growth, and Momentum. The company is currently trading at 6.17x earnings, which marks a discount to the S&P 500 average as well as the industry’s 10.41 average P/E Ratio.
Lufthansa’s P/S Ratio of 0.35 is also far “better” than the airline industry average of 0.81 and below U.S. giants Delta (DAL - Free Report) and American Airlines (AAL - Free Report) . On top of that, the German airline company’s 6.27% EPS growth projection crushes the industry’s 2.29% average, meaning that Lufthansa could be a better-than-average growth pick in the airline industry.
Air France-KLM SA
Closing out this roundup of value-driven foreign stocks with solid growth potential is French-Dutch airline power Air France-KLM. Since the beginning of the year, the company’s shares have skyrocketed 187.13%. And growth seems poised to continue as Air France-KLM has received one positive earnings estimate revision for its current full-year and one for the following year, all within the last 60 days.
According to our current consensus estimates, the company’s earnings are projected to climb 76.39% this year. Based on these same estimates, the airline giant’s revenues are set to rise by 9.35% and top $29.90 billion.
Air France-KLM earned an “A” for Value, along with a “B” for Growth and an “A” for Momentum. With a P/S Ratio of 0.17, investors pay just $0.17 for every dollar of Air France-KLM sales, making it one of the best ratios in the industry. The airline conglomerate’s 6.06 P/E Ratio also marks a discount to the industry.
More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
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3 Foreign Stocks for Value & Growth Investors to Buy Now
For some investors, the search for undervalued stocks can be paramount. But on top of this, investors want stocks that have the potential to outperform the market in the near term.
To accomplish this, investors look at several key valuation metrics. For example, a low P/E ratio is one of the more common value-based metrics that investors tend to keep their eyes on. On top of that, other value-focused stats, such as the P/S ratio, must be taken into consideration.
Still, along with value, investors often want to buy companies that are set to grow at an impressive rate. And this is where pairing basic value and growth metrics with strong Zacks Rank stocks can come in handy.
Today, we’ll look at three foreign companies, which are household names in many parts of the world, that are currently sporting a Zacks Rank #1 (Strong Buy), as well as value and growth metrics that might prove enticing for investors.
Bayerische Motoren Werke AG (BAMXF - Free Report)
This German automotive powerhouse is the parent company of three of the most recognizable and iconic auto brands: BMW, MINI, and Rolls-Royce. The firm boasts a “B” grade for Value and an “A” for Momentum in our Style Scores system, helping it earn an overall VGM grade of “A.”
With a current P/E ratio of 7.44, which beats the “Automotive – Foreign” industry average of 8.15, BAMXF is trading far below the S&P 500 average. The company’s P/S ratio of 0.57 and 1.15 P/B ratio are both strong. BAMXF’s Cash Flow per share of 21.81 crushes the industry average of 6.13, while its Price/Cash Flow ratio of 4.61 also presents value compared to the industry’s 5.43 ratio.
After seeing its stock price pop 21.89% over the last year, which outpaced the industry average of 13.37%, the company is set to keep growing. Based on our current consensus estimates, the company’s sales are set to jump 12.41% for the year to hit $117.16 billion. Also, the auto giant’s earnings are projected to pop 17.46% this year.
Deutsche Lufthansa (DLAKY - Free Report)
Deutsche Lufthansa is another German giant that helps people get from point A to B. The company operates within the Lufthansa Group and is the largest German airline. Its shares have soared 111.14% since the start of the year, which is far above “Transportation – Airline” industry average of 12%.
Lufthansa currently rocks “A” grades for Value, Growth, and Momentum. The company is currently trading at 6.17x earnings, which marks a discount to the S&P 500 average as well as the industry’s 10.41 average P/E Ratio.
Lufthansa’s P/S Ratio of 0.35 is also far “better” than the airline industry average of 0.81 and below U.S. giants Delta (DAL - Free Report) and American Airlines (AAL - Free Report) . On top of that, the German airline company’s 6.27% EPS growth projection crushes the industry’s 2.29% average, meaning that Lufthansa could be a better-than-average growth pick in the airline industry.
Air France-KLM SA
Closing out this roundup of value-driven foreign stocks with solid growth potential is French-Dutch airline power Air France-KLM. Since the beginning of the year, the company’s shares have skyrocketed 187.13%. And growth seems poised to continue as Air France-KLM has received one positive earnings estimate revision for its current full-year and one for the following year, all within the last 60 days.
According to our current consensus estimates, the company’s earnings are projected to climb 76.39% this year. Based on these same estimates, the airline giant’s revenues are set to rise by 9.35% and top $29.90 billion.
Air France-KLM earned an “A” for Value, along with a “B” for Growth and an “A” for Momentum. With a P/S Ratio of 0.17, investors pay just $0.17 for every dollar of Air France-KLM sales, making it one of the best ratios in the industry. The airline conglomerate’s 6.06 P/E Ratio also marks a discount to the industry.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>