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Are Investors Undervaluing China Automotive Systems (CAAS) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is China Automotive Systems (CAAS - Free Report) . CAAS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 12.57, while its industry has an average P/E of 18.07. Over the past 52 weeks, CAAS's Forward P/E has been as high as 19.31 and as low as 4.89, with a median of 8.60.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CAAS has a P/S ratio of 0.25. This compares to its industry's average P/S of 0.66.
Value investors will likely look at more than just these metrics, but the above data helps show that China Automotive Systems is likely undervalued currently. And when considering the strength of its earnings outlook, CAAS sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing China Automotive Systems (CAAS) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is China Automotive Systems (CAAS - Free Report) . CAAS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 12.57, while its industry has an average P/E of 18.07. Over the past 52 weeks, CAAS's Forward P/E has been as high as 19.31 and as low as 4.89, with a median of 8.60.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CAAS has a P/S ratio of 0.25. This compares to its industry's average P/S of 0.66.
Value investors will likely look at more than just these metrics, but the above data helps show that China Automotive Systems is likely undervalued currently. And when considering the strength of its earnings outlook, CAAS sticks out at as one of the market's strongest value stocks.