Are These Auto-Tires-Trucks Stocks a Great Value Stocks Right Now?

FUJHY MZDAY

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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is Fuji Heavy Industries (FUJHY - Free Report) . FUJHY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 8.42 right now. For comparison, its industry sports an average P/E of 13.70. Over the past 52 weeks, FUJHY's Forward P/E has been as high as 17.94 and as low as 8.11, with a median of 9.62.

Investors will also notice that FUJHY has a PEG ratio of 0.22. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. FUJHY's PEG compares to its industry's average PEG of 0.54. FUJHY's PEG has been as high as 2.21 and as low as 0.21, with a median of 0.23, all within the past year.

We should also highlight that FUJHY has a P/B ratio of 0.86. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.11. Over the past year, FUJHY's P/B has been as high as 0.97 and as low as 0.82, with a median of 0.90.

Finally, we should also recognize that FUJHY has a P/CF ratio of 4.86. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 6.60. Within the past 12 months, FUJHY's P/CF has been as high as 5.96 and as low as 4.63, with a median of 5.07.

If you're looking for another solid Automotive - Foreign value stock, take a look at Mazda Motor (MZDAY - Free Report) . MZDAY is a # 2 (Buy) stock with a Value score of A.

Mazda Motor sports a P/B ratio of 0.46 as well; this compares to its industry's price-to-book ratio of 1.11. In the past 52 weeks, MZDAY's P/B has been as high as 0.56, as low as 0.39, with a median of 0.49.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Fuji Heavy Industries and Mazda Motor are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FUJHY and MZDAY feels like a great value stock at the moment.

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