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Are Investors Undervaluing Stellantis (STLA) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Stellantis (STLA - Free Report) . STLA is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 5.36, while its industry has an average P/E of 13.40. Over the past 52 weeks, STLA's Forward P/E has been as high as 98.77 and as low as 4.38, with a median of 5.82.
We also note that STLA holds a PEG ratio of 0.81. 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. STLA's PEG compares to its industry's average PEG of 0.84. Over the past 52 weeks, STLA's PEG has been as high as 4.42 and as low as 0.74, with a median of 3.10.
Another notable valuation metric for STLA is its P/B ratio of 1.38. 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. This stock's P/B looks attractive against its industry's average P/B of 1.40. Within the past 52 weeks, STLA's P/B has been as high as 1.46 and as low as 0.62, with a median of 1.08.
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. STLA has a P/S ratio of 0.39. This compares to its industry's average P/S of 0.57.
Finally, our model also underscores that STLA has a P/CF ratio of 5.40. 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. This stock's P/CF looks attractive against its industry's average P/CF of 6.63. Within the past 12 months, STLA's P/CF has been as high as 5.69 and as low as 1.34, with a median of 4.30.
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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Are Investors Undervaluing Stellantis (STLA) 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Stellantis (STLA - Free Report) . STLA is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 5.36, while its industry has an average P/E of 13.40. Over the past 52 weeks, STLA's Forward P/E has been as high as 98.77 and as low as 4.38, with a median of 5.82.
We also note that STLA holds a PEG ratio of 0.81. 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. STLA's PEG compares to its industry's average PEG of 0.84. Over the past 52 weeks, STLA's PEG has been as high as 4.42 and as low as 0.74, with a median of 3.10.
Another notable valuation metric for STLA is its P/B ratio of 1.38. 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. This stock's P/B looks attractive against its industry's average P/B of 1.40. Within the past 52 weeks, STLA's P/B has been as high as 1.46 and as low as 0.62, with a median of 1.08.
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. STLA has a P/S ratio of 0.39. This compares to its industry's average P/S of 0.57.
Finally, our model also underscores that STLA has a P/CF ratio of 5.40. 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. This stock's P/CF looks attractive against its industry's average P/CF of 6.63. Within the past 12 months, STLA's P/CF has been as high as 5.69 and as low as 1.34, with a median of 4.30.
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.