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Is Daimler (DDAIF) a Great Value Stock Right Now?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

One company to watch right now is Daimler . DDAIF is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 4.04 right now. For comparison, its industry sports an average P/E of 9. Over the past year, DDAIF's Forward P/E has been as high as 7.21 and as low as 4.04, with a median of 5.84.

Investors should also note that DDAIF holds a PEG ratio of 0.14. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DDAIF's PEG compares to its industry's average PEG of 0.38. Over the last 12 months, DDAIF's PEG has been as high as 0.37 and as low as 0.14, with a median of 0.21.

Another valuation metric that we should highlight is DDAIF's P/B ratio of 0.64. 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. DDAIF's current P/B looks attractive when compared to its industry's average P/B of 0.92. DDAIF's P/B has been as high as 1.25 and as low as 0.64, with a median of 1.01, over the past year.

Finally, our model also underscores that DDAIF has a P/CF ratio of 1.58. 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 4.67. Over the past 52 weeks, DDAIF's P/CF has been as high as 4.34 and as low as 1.58, with a median of 2.60.

Investors could also keep in mind Fuji Heavy Industries (FUJHY - Free Report) , an Automotive - Foreign stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Fuji Heavy Industries is trading at a forward earnings multiple of 7.85 at the moment, with a PEG ratio of 0.14. This compares to its industry's average P/E of 9 and average PEG ratio of 0.38.

FUJHY's Forward P/E has been as high as 10.57 and as low as 7.16, with a median of 8.63. During the same time period, its PEG ratio has been as high as 0.29, as low as 0.14, with a median of 0.22.

Fuji Heavy Industries also has a P/B ratio of 0.76 compared to its industry's price-to-book ratio of 0.92. Over the past year, its P/B ratio has been as high as 0.95, as low as 0.64, with a median of 0.85.

These are only a few of the key metrics included in Daimler and Fuji Heavy Industries strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, DDAIF and FUJHY look like an impressive value stock at the moment.


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