Should Value Investors Buy Commercial Vehicle Group (CVGI) Stock?

CVGI

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

One company to watch right now is Commercial Vehicle Group (CVGI - Free Report) . CVGI is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.

Another notable valuation metric for CVGI is its P/B ratio of 1.84. 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 company's current P/B looks solid when compared to its industry's average P/B of 2.51. Over the past year, CVGI's P/B has been as high as 2.72 and as low as 1, with a median of 2.01.

Value investors will likely look at more than just these metrics, but the above data helps show that Commercial Vehicle Group is likely undervalued currently. And when considering the strength of its earnings outlook, CVGI sticks out at as one of the market's strongest value stocks.

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