Back to top

Image: Bigstock

Is Panasonic Corp. (PCRFY) a Great Value Stock Right Now?

Read MoreHide Full Article

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Panasonic Corp. (PCRFY - Free Report) . PCRFY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 12.57, while its industry has an average P/E of 16.92. PCRFY's Forward P/E has been as high as 20.31 and as low as 11.14, with a median of 14.01, all within the past year.

Investors will also notice that PCRFY has a PEG ratio of 0.49. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PCRFY's PEG compares to its industry's average PEG of 1.18. Over the past 52 weeks, PCRFY's PEG has been as high as 7.06 and as low as 0.44, with a median of 1.36.

Another valuation metric that we should highlight is PCRFY's P/B ratio of 1.23. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. PCRFY's current P/B looks attractive when compared to its industry's average P/B of 1.76. Over the past year, PCRFY's P/B has been as high as 1.49 and as low as 0.96, with a median of 1.19.

Finally, investors will want to recognize that PCRFY has a P/CF ratio of 5.68. 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. PCRFY's P/CF compares to its industry's average P/CF of 7.65. PCRFY's P/CF has been as high as 7 and as low as 4.96, with a median of 5.85, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Panasonic Corp. Is likely undervalued currently. And when considering the strength of its earnings outlook, PCRFY sticks out at as one of the market's strongest value stocks.

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Panasonic Corp. (PCRFY) - free report >>

Published in