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Should Value Investors Buy Honda Motor (HMC) Stock?
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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company to watch right now is Honda Motor (HMC - Free Report) . HMC is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.27. This compares to its industry's average Forward P/E of 17.17. HMC's Forward P/E has been as high as 14.24 and as low as 5.51, with a median of 11.12, all within the past year.
HMC is also sporting a PEG ratio of 0.38. 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. HMC's industry has an average PEG of 1.11 right now. HMC's PEG has been as high as 3.48 and as low as 0.35, with a median of 0.66, all within the past year.
Another valuation metric that we should highlight is HMC's P/B ratio of 0.64. 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 0.84. Over the past 12 months, HMC's P/B has been as high as 0.67 and as low as 0.43, with a median of 0.58.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HMC has a P/S ratio of 0.43. This compares to its industry's average P/S of 0.51.
These are only a few of the key metrics included in Honda Motor'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, HMC looks like an impressive value stock at the moment.
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Should Value Investors Buy Honda Motor (HMC) Stock?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company to watch right now is Honda Motor (HMC - Free Report) . HMC is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.27. This compares to its industry's average Forward P/E of 17.17. HMC's Forward P/E has been as high as 14.24 and as low as 5.51, with a median of 11.12, all within the past year.
HMC is also sporting a PEG ratio of 0.38. 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. HMC's industry has an average PEG of 1.11 right now. HMC's PEG has been as high as 3.48 and as low as 0.35, with a median of 0.66, all within the past year.
Another valuation metric that we should highlight is HMC's P/B ratio of 0.64. 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 0.84. Over the past 12 months, HMC's P/B has been as high as 0.67 and as low as 0.43, with a median of 0.58.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HMC has a P/S ratio of 0.43. This compares to its industry's average P/S of 0.51.
These are only a few of the key metrics included in Honda Motor'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, HMC looks like an impressive value stock at the moment.