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Should Value Investors Buy Schaeffler AG (SCFLF) Stock?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 Schaeffler AG (SCFLF - Free Report) . SCFLF is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 6.65 right now. For comparison, its industry sports an average P/E of 16.73. SCFLF's Forward P/E has been as high as 12.90 and as low as 3.36, with a median of 7.76, all within the past year.

Finally, investors will want to recognize that SCFLF has a P/CF ratio of 4.09. 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. SCFLF's P/CF compares to its industry's average P/CF of 8.82. SCFLF's P/CF has been as high as 4.78 and as low as 1.92, with a median of 4.09, all within the past year.

These are just a handful of the figures considered in Schaeffler AG'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 SCFLF is an impressive value stock right now.


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