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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Dana (DAN - Free Report) . DAN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 10.04, which compares to its industry's average of 16.59. Over the past year, DAN's Forward P/E has been as high as 15.92 and as low as 1.48, with a median of 9.47.
DAN is also sporting a PEG ratio of 1.33. 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. DAN's PEG compares to its industry's average PEG of 1.41. Within the past year, DAN's PEG has been as high as 12.36 and as low as 0.37, with a median of 1.73.
Investors should also recognize that DAN has a P/B ratio of 1.49. The P/B ratio pits a stock's market value against 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. DAN's P/B has been as high as 1.49 and as low as 0.32, with a median of 1.13, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DAN has a P/S ratio of 0.4. This compares to its industry's average P/S of 0.64.
Finally, our model also underscores that DAN has a P/CF ratio of 7.21. 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. This stock's P/CF looks attractive against its industry's average P/CF of 8.82. Within the past 12 months, DAN's P/CF has been as high as 7.21 and as low as 1.09, with a median of 4.02.
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?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Dana (DAN - Free Report) . DAN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 10.04, which compares to its industry's average of 16.59. Over the past year, DAN's Forward P/E has been as high as 15.92 and as low as 1.48, with a median of 9.47.
DAN is also sporting a PEG ratio of 1.33. 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. DAN's PEG compares to its industry's average PEG of 1.41. Within the past year, DAN's PEG has been as high as 12.36 and as low as 0.37, with a median of 1.73.
Investors should also recognize that DAN has a P/B ratio of 1.49. The P/B ratio pits a stock's market value against 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. DAN's P/B has been as high as 1.49 and as low as 0.32, with a median of 1.13, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DAN has a P/S ratio of 0.4. This compares to its industry's average P/S of 0.64.
Finally, our model also underscores that DAN has a P/CF ratio of 7.21. 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. This stock's P/CF looks attractive against its industry's average P/CF of 8.82. Within the past 12 months, DAN's P/CF has been as high as 7.21 and as low as 1.09, with a median of 4.02.
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.