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 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 Daimler AG . DDAIF is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 6.64, while its industry has an average P/E of 11.61. Over the past year, DDAIF's Forward P/E has been as high as 22.98 and as low as 6.14, with a median of 8.83.
DDAIF is also sporting a PEG ratio of 0.43. 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. DDAIF's PEG compares to its industry's average PEG of 0.63. DDAIF's PEG has been as high as 2.41 and as low as 0.40, with a median of 1.12, all within the past year.
We should also highlight that DDAIF has a P/B ratio of 1.18. 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. DDAIF's current P/B looks attractive when compared to its industry's average P/B of 1.20. DDAIF's P/B has been as high as 1.38 and as low as 0.46, with a median of 0.98, 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. DDAIF has a P/S ratio of 0.53. This compares to its industry's average P/S of 0.55.
Finally, our model also underscores that DDAIF has a P/CF ratio of 4.83. 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. DDAIF's current P/CF looks attractive when compared to its industry's average P/CF of 7.39. Over the past year, DDAIF's P/CF has been as high as 7.64 and as low as 3.51, with a median of 5.76.
Value investors will likely look at more than just these metrics, but the above data helps show that Daimler AG is likely undervalued currently. And when considering the strength of its earnings outlook, DDAIF sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Daimler AG (DDAIF) 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 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 Daimler AG . DDAIF is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 6.64, while its industry has an average P/E of 11.61. Over the past year, DDAIF's Forward P/E has been as high as 22.98 and as low as 6.14, with a median of 8.83.
DDAIF is also sporting a PEG ratio of 0.43. 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. DDAIF's PEG compares to its industry's average PEG of 0.63. DDAIF's PEG has been as high as 2.41 and as low as 0.40, with a median of 1.12, all within the past year.
We should also highlight that DDAIF has a P/B ratio of 1.18. 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. DDAIF's current P/B looks attractive when compared to its industry's average P/B of 1.20. DDAIF's P/B has been as high as 1.38 and as low as 0.46, with a median of 0.98, 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. DDAIF has a P/S ratio of 0.53. This compares to its industry's average P/S of 0.55.
Finally, our model also underscores that DDAIF has a P/CF ratio of 4.83. 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. DDAIF's current P/CF looks attractive when compared to its industry's average P/CF of 7.39. Over the past year, DDAIF's P/CF has been as high as 7.64 and as low as 3.51, with a median of 5.76.
Value investors will likely look at more than just these metrics, but the above data helps show that Daimler AG is likely undervalued currently. And when considering the strength of its earnings outlook, DDAIF sticks out at as one of the market's strongest value stocks.