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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Honda Motor Co. (HMC - Free Report) is a stock many investors are watching right now. HMC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 7.83 right now. For comparison, its industry sports an average P/E of 9.67. Over the past year, HMC's Forward P/E has been as high as 9.18 and as low as 6.87, with a median of 7.67.
Investors will also notice that HMC has a PEG ratio of 0.42. 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. HMC's industry has an average PEG of 0.51 right now. Over the past 52 weeks, HMC's PEG has been as high as 1.36 and as low as 0.32, with a median of 0.47.
Another valuation metric that we should highlight is HMC's P/B ratio of 0.73. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.61. Over the past year, HMC's P/B has been as high as 0.73 and as low as 0.52, with a median of 0.60.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HMC has a P/S ratio of 0.44. This compares to its industry's average P/S of 0.85.
Finally, investors will want to recognize that HMC has a P/CF ratio of 4.61. 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. HMC's P/CF compares to its industry's average P/CF of 8.05. HMC's P/CF has been as high as 5.19 and as low as 3.92, with a median of 4.25, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Honda Motor Co. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HMC feels like a great value stock at the moment.
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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Honda Motor Co. (HMC - Free Report) is a stock many investors are watching right now. HMC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 7.83 right now. For comparison, its industry sports an average P/E of 9.67. Over the past year, HMC's Forward P/E has been as high as 9.18 and as low as 6.87, with a median of 7.67.
Investors will also notice that HMC has a PEG ratio of 0.42. 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. HMC's industry has an average PEG of 0.51 right now. Over the past 52 weeks, HMC's PEG has been as high as 1.36 and as low as 0.32, with a median of 0.47.
Another valuation metric that we should highlight is HMC's P/B ratio of 0.73. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.61. Over the past year, HMC's P/B has been as high as 0.73 and as low as 0.52, with a median of 0.60.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HMC has a P/S ratio of 0.44. This compares to its industry's average P/S of 0.85.
Finally, investors will want to recognize that HMC has a P/CF ratio of 4.61. 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. HMC's P/CF compares to its industry's average P/CF of 8.05. HMC's P/CF has been as high as 5.19 and as low as 3.92, with a median of 4.25, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Honda Motor Co. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HMC feels like a great value stock at the moment.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
Get the latest research report on HMC - FREE