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Is Stellantis (STLA) a Great Value Stock Right Now?
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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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company value investors might notice is Stellantis (STLA - Free Report) . STLA 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 5.06 right now. For comparison, its industry sports an average P/E of 12.02. Over the past year, STLA's Forward P/E has been as high as 13,013.31 and as low as -2,085.57, with a median of 6.65.
Investors should also recognize that STLA has a P/B ratio of 1.15. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. STLA's current P/B looks attractive when compared to its industry's average P/B of 1.18. STLA's P/B has been as high as 1.27 and as low as 0.52, with a median of 0.88, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. STLA has a P/S ratio of 0.34. This compares to its industry's average P/S of 0.54.
Finally, investors will want to recognize that STLA has a P/CF ratio of 4.50. 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. STLA's current P/CF looks attractive when compared to its industry's average P/CF of 7.28. Over the past year, STLA's P/CF has been as high as 4.95 and as low as 1.13, with a median of 4.07.
These are only a few of the key metrics included in Stellantis'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, STLA looks like an impressive value stock at the moment.
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Is Stellantis (STLA) a Great Value Stock 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company value investors might notice is Stellantis (STLA - Free Report) . STLA 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 5.06 right now. For comparison, its industry sports an average P/E of 12.02. Over the past year, STLA's Forward P/E has been as high as 13,013.31 and as low as -2,085.57, with a median of 6.65.
Investors should also recognize that STLA has a P/B ratio of 1.15. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. STLA's current P/B looks attractive when compared to its industry's average P/B of 1.18. STLA's P/B has been as high as 1.27 and as low as 0.52, with a median of 0.88, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. STLA has a P/S ratio of 0.34. This compares to its industry's average P/S of 0.54.
Finally, investors will want to recognize that STLA has a P/CF ratio of 4.50. 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. STLA's current P/CF looks attractive when compared to its industry's average P/CF of 7.28. Over the past year, STLA's P/CF has been as high as 4.95 and as low as 1.13, with a median of 4.07.
These are only a few of the key metrics included in Stellantis'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, STLA looks like an impressive value stock at the moment.