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Should Value Investors Buy Nissan Motor Co. (NSANY) Stock?

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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.

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 Nissan Motor Co. (NSANY - Free Report) . NSANY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 6.40, which compares to its industry's average of 7.26. NSANY's Forward P/E has been as high as 13.36 and as low as 5.16, with a median of 6.19, all within the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. NSANY has a P/S ratio of 0.19. This compares to its industry's average P/S of 0.53.

Finally, we should also recognize that NSANY has a P/CF ratio of 2.23. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 5.59. Over the past year, NSANY's P/CF has been as high as 2.54 and as low as 1.84, with a median of 2.07.

If you're looking for another solid Automotive - Foreign value stock, take a look at Suzuki Motor (SZKMY - Free Report) . SZKMY is a # 2 (Buy) stock with a Value score of A.

Furthermore, Suzuki Motor holds a P/B ratio of 0.98 and its industry's price-to-book ratio is 1.54. SZKMY's P/B has been as high as 1.09, as low as 0.69, with a median of 0.92 over the past 12 months.

Value investors will likely look at more than just these metrics, but the above data helps show that Nissan Motor Co. and Suzuki Motor are likely undervalued currently. And when considering the strength of its earnings outlook, NSANY and SZKMY sticks out as one of the market's strongest value stocks.


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