Are Investors Undervaluing Subaru Corporation (FUJHY) Right Now?

FUJHY

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 to watch right now is Subaru Corporation (FUJHY - Free Report) . FUJHY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 6.49, while its industry has an average P/E of 9.32. FUJHY's Forward P/E has been as high as 8.20 and as low as 5.76, with a median of 6.82, all within the past year.

Investors will also notice that FUJHY has a PEG ratio of 0.29. 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 0.39. Over the past 52 weeks, FUJHY's PEG has been as high as 0.50 and as low as 0.27, with a median of 0.31.

Another valuation metric that we should highlight is FUJHY's P/B ratio of 0.88. 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. This stock's P/B looks attractive against its industry's average P/B of 1.13. Within the past 52 weeks, FUJHY's P/B has been as high as 1 and as low as 0.76, with a median of 0.85.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FUJHY has a P/S ratio of 0.48. This compares to its industry's average P/S of 0.65.

Finally, we should also recognize that FUJHY has a P/CF ratio of 3.94. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. FUJHY's current P/CF looks attractive when compared to its industry's average P/CF of 6.76. Over the past 52 weeks, FUJHY's P/CF has been as high as 5.08 and as low as 3.59, with a median of 4.06.

These are just a handful of the figures considered in Subaru Corporation'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 FUJHY is an impressive value stock right now.

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With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.

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