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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 Dana (DAN - Free Report) . DAN is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
Another valuation metric that we should highlight is DAN's P/B ratio of 1.63. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.41. DAN's P/B has been as high as 1.63 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. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DAN has a P/S ratio of 0.44. This compares to its industry's average P/S of 0.69.
Finally, investors will want to recognize that DAN has a P/CF ratio of 7.91. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 8.82. Over the past 52 weeks, DAN's P/CF has been as high as 7.91 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 Dana (DAN - Free Report) . DAN is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
Another valuation metric that we should highlight is DAN's P/B ratio of 1.63. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.41. DAN's P/B has been as high as 1.63 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. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DAN has a P/S ratio of 0.44. This compares to its industry's average P/S of 0.69.
Finally, investors will want to recognize that DAN has a P/CF ratio of 7.91. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 8.82. Over the past 52 weeks, DAN's P/CF has been as high as 7.91 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.