Are Investors Undervaluing The Timken Company (TKR) Right Now?

TKR

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 The Timken Company (TKR - Free Report) . TKR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 13.68, while its industry has an average P/E of 24.17. TKR's Forward P/E has been as high as 14.48 and as low as 9.13, with a median of 11.24, all within the past year.

Finally, investors should note that TKR has a P/CF ratio of 10.19. 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. TKR's P/CF compares to its industry's average P/CF of 28.18. Over the past 52 weeks, TKR's P/CF has been as high as 11.56 and as low as 7.86, with a median of 9.46.

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

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