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Are Investors Undervaluing General Motors (GM) Right Now?
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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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
General Motors (GM - Free Report) is a stock many investors are watching right now. GM is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
Investors will also notice that GM has a PEG ratio of 0.74. 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. GM's PEG compares to its industry's average PEG of 2.18. GM's PEG has been as high as 1.17 and as low as 0.74, with a median of 0.92, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. GM has a P/S ratio of 0.58. This compares to its industry's average P/S of 0.97.
These are just a handful of the figures considered in General Motors'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 GM is an impressive value stock right now.
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Are Investors Undervaluing General Motors (GM) Right Now?
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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
General Motors (GM - Free Report) is a stock many investors are watching right now. GM is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
Investors will also notice that GM has a PEG ratio of 0.74. 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. GM's PEG compares to its industry's average PEG of 2.18. GM's PEG has been as high as 1.17 and as low as 0.74, with a median of 0.92, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. GM has a P/S ratio of 0.58. This compares to its industry's average P/S of 0.97.
These are just a handful of the figures considered in General Motors'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 GM is an impressive value stock right now.