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Should Value Investors Buy Suzuki Motor (SZKMY) Stock?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 Suzuki Motor (SZKMY - Free Report) . SZKMY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 9.97, while its industry has an average P/E of 13.47. SZKMY's Forward P/E has been as high as 16.15 and as low as 9.70, with a median of 11.65, all within the past year.

We should also highlight that SZKMY has a P/B ratio of 1.02. 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. SZKMY's current P/B looks attractive when compared to its industry's average P/B of 1.09. Over the past year, SZKMY's P/B has been as high as 1.39 and as low as 0.97, with a median of 1.13.

Finally, we should also recognize that SZKMY has a P/CF ratio of 6.18. 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 stock's P/CF looks attractive against its industry's average P/CF of 6.48. Over the past year, SZKMY's P/CF has been as high as 9.68 and as low as 5.66, with a median of 7.18.

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


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