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Should Value Investors Buy Bayerische Motoren Werke AG Sponsored ADR (BMWYY) Stock?

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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 Bayerische Motoren Werke AG Sponsored ADR (BMWYY - Free Report) . BMWYY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 5.35. This compares to its industry's average Forward P/E of 8.62. Over the last 12 months, BMWYY's Forward P/E has been as high as 5.35 and as low as 4.23, with a median of 4.62.

Another notable valuation metric for BMWYY is its P/B ratio of 0.62. 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. BMWYY's current P/B looks attractive when compared to its industry's average P/B of 0.92. Over the past year, BMWYY's P/B has been as high as 0.62 and as low as 0.48, with a median of 0.56.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. BMWYY has a P/S ratio of 0.39. This compares to its industry's average P/S of 0.51.

Another great Automotive - Foreign stock you could consider is Fuji Heavy Industries (FUJHY - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.

Fuji Heavy Industries is currently trading with a Forward P/E ratio of 6.63 while its PEG ratio sits at 0.11. Both of the company's metrics compare favorably to its industry's average P/E of 8.62 and average PEG ratio of 0.79.

Over the last 12 months, FUJHY's P/E has been as high as 9.57, as low as 6.07, with a median of 7.85, and its PEG ratio has been as high as 0.29, as low as 0.11, with a median of 0.21.

Fuji Heavy Industries sports a P/B ratio of 0.84 as well; this compares to its industry's price-to-book ratio of 0.92. In the past 52 weeks, FUJHY's P/B has been as high as 0.93, as low as 0.64, with a median of 0.83.

Value investors will likely look at more than just these metrics, but the above data helps show that Bayerische Motoren Werke AG Sponsored ADR and Fuji Heavy Industries are likely undervalued currently. And when considering the strength of its earnings outlook, BMWYY and FUJHY sticks out as one of the market's strongest value stocks.


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