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Is Mazda Motor (MZDAY) 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 to watch right now is Mazda Motor (MZDAY - Free Report) . MZDAY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 7.10, while its industry has an average P/E of 9.30. Over the last 12 months, MZDAY's Forward P/E has been as high as 13.24 and as low as 5.37, with a median of 9.36.

Investors should also recognize that MZDAY has a P/B ratio of 0.48. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.09. Within the past 52 weeks, MZDAY's P/B has been as high as 0.56 and as low as 0.36, with a median of 0.49.

Finally, investors will want to recognize that MZDAY has a P/CF ratio of 3.50. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. MZDAY's P/CF compares to its industry's average P/CF of 4.38. Within the past 12 months, MZDAY's P/CF has been as high as 11.04 and as low as 2.61, with a median of 3.53.

These are only a few of the key metrics included in Mazda Motor'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, MZDAY looks like an impressive value stock at the moment.


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