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Is Standard Motor Products (SMP) a Great Value Stock Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 value investors might notice is Standard Motor Products (SMP - Free Report) . SMP is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 12.34. This compares to its industry's average Forward P/E of 15.06. Over the past 52 weeks, SMP's Forward P/E has been as high as 16.16 and as low as 10.17, with a median of 13.10.
We should also highlight that SMP has a P/B ratio of 1.97. 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. This stock's P /B looks attractive against its industry's average P/B of 3.09. Within the past 52 weeks, SMP's P/B has been as high as 2.23 and as low as 1.53, with a median of 1.74.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SMP has a P/S ratio of 0.92. This compares to its industry's average P/S of 1.63.
Finally, investors will want to recognize that SMP has a P/CF ratio of 10.83. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 16.99. Within the past 12 months, SMP's P/CF has been as high as 14.36 and as low as 8.08, with a median of 10.39.
These are only a few of the key metrics included in Standard Motor Products, Inc.'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, SMP looks like an impressive value stock at the moment.
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Is Standard Motor Products (SMP) a Great Value Stock Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 value investors might notice is Standard Motor Products (SMP - Free Report) . SMP is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 12.34. This compares to its industry's average Forward P/E of 15.06. Over the past 52 weeks, SMP's Forward P/E has been as high as 16.16 and as low as 10.17, with a median of 13.10.
We should also highlight that SMP has a P/B ratio of 1.97. 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. This stock's P /B looks attractive against its industry's average P/B of 3.09. Within the past 52 weeks, SMP's P/B has been as high as 2.23 and as low as 1.53, with a median of 1.74.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SMP has a P/S ratio of 0.92. This compares to its industry's average P/S of 1.63.
Finally, investors will want to recognize that SMP has a P/CF ratio of 10.83. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 16.99. Within the past 12 months, SMP's P/CF has been as high as 14.36 and as low as 8.08, with a median of 10.39.
These are only a few of the key metrics included in Standard Motor Products, Inc.'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, SMP looks like an impressive value stock at the moment.