Should Value Investors Buy Aptiv (APTV) Stock?

APTV

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is Aptiv (APTV - Free Report) . APTV is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 13.34 right now. For comparison, its industry sports an average P/E of 38.50. Over the last 12 months, APTV's Forward P/E has been as high as 21.76 and as low as 11.38, with a median of 15.14.

Investors will also notice that APTV has a PEG ratio of 0.96. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. APTV's industry has an average PEG of 1.38 right now. Over the past 52 weeks, APTV's PEG has been as high as 1.99 and as low as 0.68, with a median of 0.95.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. APTV has a P/S ratio of 1.13. This compares to its industry's average P/S of 1.66.

These are only a few of the key metrics included in Aptiv's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, APTV looks like an impressive value stock at the moment.

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