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Are Investors Undervaluing Stellantis (STLA) 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.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 Stellantis (STLA - Free Report) . STLA is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.

Another valuation metric that we should highlight is STLA's P/B ratio of 0.60. 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 stock's P/B looks attractive against its industry's average P/B of 0.97. Within the past 52 weeks, STLA's P/B has been as high as 1.02 and as low as 0.52, with a median of 0.69.

Finally, investors should note that STLA has a P/CF ratio of 4.49. 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. STLA's P/CF compares to its industry's average P/CF of 4.64. Over the past 52 weeks, STLA's P/CF has been as high as 5.82 and as low as 3.69, with a median of 5.13.

These are just a handful of the figures considered in Stellantis'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 STLA is an impressive value stock right now.


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