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Should Value Investors Buy Fuji Heavy Industries (FUJHY) Stock?

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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.

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.

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 value investors might notice is Fuji Heavy Industries (FUJHY - Free Report) . FUJHY 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 6.22. This compares to its industry's average Forward P/E of 7.62. FUJHY's Forward P/E has been as high as 10.57 and as low as 6.07, with a median of 8.09, all within the past year.

We also note that FUJHY holds a PEG ratio of 0.11. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FUJHY's industry currently sports an average PEG of 0.32. Over the past 52 weeks, FUJHY's PEG has been as high as 0.29 and as low as 0.11, with a median of 0.22.

Investors should also recognize that FUJHY has a P/B ratio of 0.78. The P/B ratio pits a stock's market value against 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 0.82. Over the past year, FUJHY's P/B has been as high as 0.94 and as low as 0.64, with a median of 0.83.

These are just a handful of the figures considered in Fuji Heavy Industries'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 FUJHY is an impressive value stock right now.


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