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Should Value Investors Buy Stellantis (STLA) Stock?

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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, 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 stock to keep an eye on is Stellantis (STLA - Free Report) . STLA is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 3.73, while its industry has an average P/E of 8.88. STLA's Forward P/E has been as high as 5.64 and as low as 2.64, with a median of 3.37, all within the past year.

Another valuation metric that we should highlight is STLA's P/B ratio of 0.67. 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 solid versus its industry's average P/B of 0.89. STLA's P/B has been as high as 1.02 and as low as 0.52, with a median of 0.66, over the past year.

These are only a few of the key metrics included in Stellantis'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, STLA looks like an impressive value stock at the moment.


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