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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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
AB Volvo (VLVLY - Free Report) is a stock many investors are watching right now. VLVLY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 10.65. This compares to its industry's average Forward P/E of 11.61. Over the past 52 weeks, VLVLY's Forward P/E has been as high as 15.67 and as low as 10.29, with a median of 12.78.
VLVLY is also sporting a PEG ratio of 0.71. 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. VLVLY's PEG compares to its industry's average PEG of 1.02. Within the past year, VLVLY's PEG has been as high as 1.04 and as low as 0.69, with a median of 0.80.
Investors should also recognize that VLVLY has a P/B ratio of 2.67. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. VLVLY's current P/B looks attractive when compared to its industry's average P/B of 2.68. Within the past 52 weeks, VLVLY's P/B has been as high as 3.44 and as low as 2.45, with a median of 3.01.
Finally, investors will want to recognize that VLVLY has a P/CF ratio of 6.84. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.14. VLVLY's P/CF has been as high as 9.49 and as low as 6.30, with a median of 8.26, all within the past year.
These are just a handful of the figures considered in AB Volvo'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 VLVLY is an impressive value stock right now.
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Is AB Volvo (VLVLY) Stock Undervalued Right Now?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
AB Volvo (VLVLY - Free Report) is a stock many investors are watching right now. VLVLY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 10.65. This compares to its industry's average Forward P/E of 11.61. Over the past 52 weeks, VLVLY's Forward P/E has been as high as 15.67 and as low as 10.29, with a median of 12.78.
VLVLY is also sporting a PEG ratio of 0.71. 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. VLVLY's PEG compares to its industry's average PEG of 1.02. Within the past year, VLVLY's PEG has been as high as 1.04 and as low as 0.69, with a median of 0.80.
Investors should also recognize that VLVLY has a P/B ratio of 2.67. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. VLVLY's current P/B looks attractive when compared to its industry's average P/B of 2.68. Within the past 52 weeks, VLVLY's P/B has been as high as 3.44 and as low as 2.45, with a median of 3.01.
Finally, investors will want to recognize that VLVLY has a P/CF ratio of 6.84. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.14. VLVLY's P/CF has been as high as 9.49 and as low as 6.30, with a median of 8.26, all within the past year.
These are just a handful of the figures considered in AB Volvo'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 VLVLY is an impressive value stock right now.