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Are Investors Undervaluing Porsche Automobil Holding SE (POAHY) Right Now?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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 company value investors might notice is Porsche Automobil Holding SE (POAHY - Free Report) . POAHY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 3.76 right now. For comparison, its industry sports an average P/E of 7.30. Over the past 52 weeks, POAHY's Forward P/E has been as high as 4.44 and as low as 2.74, with a median of 3.65.

Investors should also note that POAHY holds a PEG ratio of 0.88. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. POAHY's industry currently sports an average PEG of 1.22. Over the past 52 weeks, POAHY's PEG has been as high as 3.10 and as low as 0.64, with a median of 2.57.

Investors should also recognize that POAHY has a P/B ratio of 0.36. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 0.90. POAHY's P/B has been as high as 0.65 and as low as 0.32, with a median of 0.44, over the past year.

Investors could also keep in mind Yamaha Motor Co. (YAMHF - Free Report) , an Automotive - Foreign stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.

Yamaha Motor Co. sports a P/B ratio of 1.03 as well; this compares to its industry's price-to-book ratio of 0.90. In the past 52 weeks, YAMHF's P/B has been as high as 1.14, as low as 0.78, with a median of 0.91.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Porsche Automobil Holding SE and Yamaha Motor Co. are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, POAHY and YAMHF feels like a great value stock at the moment.


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