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Is Greenland Technologies (GTEC) a Great Value Stock 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.

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.

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.

Greenland Technologies (GTEC - Free Report) is a stock many investors are watching right now. GTEC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 5.62. This compares to its industry's average Forward P/E of 13.87. Over the last 12 months, GTEC's Forward P/E has been as high as 16.83 and as low as 4.09, with a median of 8.49.

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. GTEC has a P/S ratio of 0.43. This compares to its industry's average P/S of 1.09.

Finally, our model also underscores that GTEC has a P/CF ratio of 5.35. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.15. Over the past year, GTEC's P/CF has been as high as 9.84 and as low as 3.70, with a median of 5.85.

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


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