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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Volvo (VLVLY - Free Report) . VLVLY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 12.05 right now. For comparison, its industry sports an average P/E of 20.99. VLVLY's Forward P/E has been as high as 12.33 and as low as 7.86, with a median of 9.91, all within the past year.
Investors should also note that VLVLY holds a PEG ratio of 0.76. 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. VLVLY's industry has an average PEG of 1.14 right now. Over the past 52 weeks, VLVLY's PEG has been as high as 1.07 and as low as 0.51, with a median of 0.67.
Another valuation metric that we should highlight is VLVLY's P/B ratio of 2.54. Investors use the P/B ratio to look at a stock's market value versus 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 4.08. Over the past 12 months, VLVLY's P/B has been as high as 2.58 and as low as 1.78, with a median of 2.20.
Value investors will likely look at more than just these metrics, but the above data helps show that Volvo is likely undervalued currently. And when considering the strength of its earnings outlook, VLVLY sticks out at as one of the market's strongest value stocks.
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Is Volvo (VLVLY) Stock Undervalued Right Now?
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Volvo (VLVLY - Free Report) . VLVLY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 12.05 right now. For comparison, its industry sports an average P/E of 20.99. VLVLY's Forward P/E has been as high as 12.33 and as low as 7.86, with a median of 9.91, all within the past year.
Investors should also note that VLVLY holds a PEG ratio of 0.76. 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. VLVLY's industry has an average PEG of 1.14 right now. Over the past 52 weeks, VLVLY's PEG has been as high as 1.07 and as low as 0.51, with a median of 0.67.
Another valuation metric that we should highlight is VLVLY's P/B ratio of 2.54. Investors use the P/B ratio to look at a stock's market value versus 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 4.08. Over the past 12 months, VLVLY's P/B has been as high as 2.58 and as low as 1.78, with a median of 2.20.
Value investors will likely look at more than just these metrics, but the above data helps show that Volvo is likely undervalued currently. And when considering the strength of its earnings outlook, VLVLY sticks out at as one of the market's strongest value stocks.