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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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 Dana (DAN - Free Report) . DAN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 9.15, while its industry has an average P/E of 17.84. DAN's Forward P/E has been as high as 15.92 and as low as 1.48, with a median of 9.06, all within the past year.
Another valuation metric that we should highlight is DAN's P/B ratio of 1.22. The P/B is a method of comparing a stock's market value to 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 2.41. Over the past year, DAN's P/B has been as high as 1.45 and as low as 0.32, with a median of 1.13.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DAN has a P/S ratio of 0.29. This compares to its industry's average P/S of 0.5.
Finally, we should also recognize that DAN has a P/CF ratio of 4.37. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. DAN's P/CF compares to its industry's average P/CF of 8.82. DAN's P/CF has been as high as 4.83 and as low as 1.09, with a median of 4, all within the past year.
These are only a few of the key metrics included in Dana'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, DAN looks like an impressive value stock at the moment.
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Is Dana (DAN) Stock Undervalued Right Now?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 Dana (DAN - Free Report) . DAN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 9.15, while its industry has an average P/E of 17.84. DAN's Forward P/E has been as high as 15.92 and as low as 1.48, with a median of 9.06, all within the past year.
Another valuation metric that we should highlight is DAN's P/B ratio of 1.22. The P/B is a method of comparing a stock's market value to 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 2.41. Over the past year, DAN's P/B has been as high as 1.45 and as low as 0.32, with a median of 1.13.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DAN has a P/S ratio of 0.29. This compares to its industry's average P/S of 0.5.
Finally, we should also recognize that DAN has a P/CF ratio of 4.37. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. DAN's P/CF compares to its industry's average P/CF of 8.82. DAN's P/CF has been as high as 4.83 and as low as 1.09, with a median of 4, all within the past year.
These are only a few of the key metrics included in Dana'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, DAN looks like an impressive value stock at the moment.