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Is Dana (DAN) Stock Undervalued Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

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.

Investors will also notice that DAN has a PEG ratio of 1.32. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DAN's PEG compares to its industry's average PEG of 3.82. DAN's PEG has been as high as 12.36 and as low as 0.37, with a median of 1.73, all within the past year.

Investors should also recognize that DAN has a P/B ratio of 1.73. 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 solid versus its industry's average P/B of 2.41. DAN's P/B has been as high as 1.83 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 0.71.

Finally, investors should note that DAN has a P/CF ratio of 8.41. 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. DAN's P/CF compares to its industry's average P/CF of 8.82. DAN's P/CF has been as high as 8.86 and as low as 1.09, with a median of 4.02, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Dana is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DAN feels like a great value stock at the moment.


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