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Are Investors Undervaluing Nissan Motor Co. (NSANY) Right Now?

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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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 Nissan Motor Co. (NSANY - Free Report) . NSANY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 7.82. This compares to its industry's average Forward P/E of 11.15. NSANY's Forward P/E has been as high as 470.53 and as low as -3,834, with a median of 13.56, all within the past year.

Another valuation metric that we should highlight is NSANY's P/B ratio of 0.50. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.06. Over the past 12 months, NSANY's P/B has been as high as 0.69 and as low as 0.48, with a median of 0.54.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. NSANY has a P/S ratio of 0.25. This compares to its industry's average P/S of 0.52.

Finally, investors will want to recognize that NSANY has a P/CF ratio of 2.84. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. NSANY's current P/CF looks attractive when compared to its industry's average P/CF of 6.29. Within the past 12 months, NSANY's P/CF has been as high as 9.03 and as low as -8.58, with a median of 3.27.

These are just a handful of the figures considered in Nissan Motor Co.'s great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that NSANY is an impressive value stock right now.


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