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Are Investors Undervaluing Mercedes-Benz Group AG (MBGAF) Right Now?

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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, 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.

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 company to watch right now is Mercedes-Benz Group AG (MBGAF - Free Report) . MBGAF is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 5.66. This compares to its industry's average Forward P/E of 7.61. Over the past 52 weeks, MBGAF's Forward P/E has been as high as 6.09 and as low as 3.90, with a median of 5.06.

Finally, investors will want to recognize that MBGAF has a P/CF ratio of 3.73. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.05. Over the past 52 weeks, MBGAF's P/CF has been as high as 3.87 and as low as 1.67, with a median of 2.12.

These are just a handful of the figures considered in Mercedes-Benz Group AG'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 MBGAF is an impressive value stock right now.


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