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Should Value Investors Buy Geely Automobile (GELYY) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Geely Automobile (GELYY - Free Report) is a stock many investors are watching right now. GELYY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 6.73 right now. For comparison, its industry sports an average P/E of 7.02. Over the past 52 weeks, GELYY's Forward P/E has been as high as 14.63 and as low as 4.80, with a median of 7.98.

Investors will also notice that GELYY has a PEG ratio of 0.96. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GELYY's industry currently sports an average PEG of 2.01. Within the past year, GELYY's PEG has been as high as 1.46 and as low as 0.39, with a median of 0.72.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Geely Automobile is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GELYY feels like a great value stock at the moment.


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