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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
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 Meritor . MTOR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors should also note that MTOR holds a PEG ratio of 0.39. 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. MTOR's PEG compares to its industry's average PEG of 0.88. Over the past 52 weeks, MTOR's PEG has been as high as 0.56 and as low as 0.36, with a median of 0.40.
Another valuation metric that we should highlight is MTOR's P/B ratio of 2.91. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. MTOR's current P/B looks attractive when compared to its industry's average P/B of 4.15. MTOR's P/B has been as high as 4.22 and as low as 2.31, with a median of 2.96, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MTOR has a P/S ratio of 0.44. This compares to its industry's average P/S of 0.99.
Finally, our model also underscores that MTOR has a P/CF ratio of 6. 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 15.06. Over the past 52 weeks, MTOR's P/CF has been as high as 13.28 and as low as 5.02, with a median of 6.81.
These are only a few of the key metrics included in Meritor'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, MTOR looks like an impressive value stock at the moment.
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Should Value Investors Buy Meritor (MTOR) Stock?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
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 Meritor . MTOR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors should also note that MTOR holds a PEG ratio of 0.39. 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. MTOR's PEG compares to its industry's average PEG of 0.88. Over the past 52 weeks, MTOR's PEG has been as high as 0.56 and as low as 0.36, with a median of 0.40.
Another valuation metric that we should highlight is MTOR's P/B ratio of 2.91. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. MTOR's current P/B looks attractive when compared to its industry's average P/B of 4.15. MTOR's P/B has been as high as 4.22 and as low as 2.31, with a median of 2.96, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MTOR has a P/S ratio of 0.44. This compares to its industry's average P/S of 0.99.
Finally, our model also underscores that MTOR has a P/CF ratio of 6. 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 15.06. Over the past 52 weeks, MTOR's P/CF has been as high as 13.28 and as low as 5.02, with a median of 6.81.
These are only a few of the key metrics included in Meritor'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, MTOR looks like an impressive value stock at the moment.