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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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company to watch right now is BorgWarner (BWA - Free Report) . BWA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 6.88. This compares to its industry's average Forward P/E of 18.05. BWA's Forward P/E has been as high as 12.78 and as low as 6.81, with a median of 8.72, all within the past year.
Investors should also recognize that BWA has a P/B ratio of 1.10. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.08. Within the past 52 weeks, BWA's P/B has been as high as 1.66 and as low as 1.08, with a median of 1.30.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BWA has a P/S ratio of 0.54. This compares to its industry's average P/S of 0.68.
Finally, investors should note that BWA has a P/CF ratio of 5.72. 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. BWA's P/CF compares to its industry's average P/CF of 22.84. Within the past 12 months, BWA's P/CF has been as high as 9.15 and as low as 5.51, with a median of 6.73.
These are only a few of the key metrics included in BorgWarner'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, BWA looks like an impressive value stock at the moment.
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Is BorgWarner (BWA) Stock Undervalued 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.
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.
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.
One company to watch right now is BorgWarner (BWA - Free Report) . BWA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 6.88. This compares to its industry's average Forward P/E of 18.05. BWA's Forward P/E has been as high as 12.78 and as low as 6.81, with a median of 8.72, all within the past year.
Investors should also recognize that BWA has a P/B ratio of 1.10. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.08. Within the past 52 weeks, BWA's P/B has been as high as 1.66 and as low as 1.08, with a median of 1.30.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BWA has a P/S ratio of 0.54. This compares to its industry's average P/S of 0.68.
Finally, investors should note that BWA has a P/CF ratio of 5.72. 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. BWA's P/CF compares to its industry's average P/CF of 22.84. Within the past 12 months, BWA's P/CF has been as high as 9.15 and as low as 5.51, with a median of 6.73.
These are only a few of the key metrics included in BorgWarner'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, BWA looks like an impressive value stock at the moment.