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Are Investors Undervaluing Volvo (VLVLY) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Volvo (VLVLY - Free Report) . VLVLY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 10.85 right now. For comparison, its industry sports an average P/E of 21.92. Over the last 12 months, VLVLY's Forward P/E has been as high as 12.33 and as low as 7.86, with a median of 10.52.
Investors should also note that VLVLY holds a PEG ratio of 0.69. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. VLVLY's industry has an average PEG of 1.27 right now. Over the last 12 months, VLVLY's PEG has been as high as 1.07 and as low as 0.51, with a median of 0.67.
Investors should also recognize that VLVLY has a P/B ratio of 2.49. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.62. 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 2.27.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Volvo is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, VLVLY feels like a great value stock at the moment.
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Are Investors Undervaluing Volvo (VLVLY) Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Volvo (VLVLY - Free Report) . VLVLY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 10.85 right now. For comparison, its industry sports an average P/E of 21.92. Over the last 12 months, VLVLY's Forward P/E has been as high as 12.33 and as low as 7.86, with a median of 10.52.
Investors should also note that VLVLY holds a PEG ratio of 0.69. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. VLVLY's industry has an average PEG of 1.27 right now. Over the last 12 months, VLVLY's PEG has been as high as 1.07 and as low as 0.51, with a median of 0.67.
Investors should also recognize that VLVLY has a P/B ratio of 2.49. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.62. 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 2.27.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Volvo is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, VLVLY feels like a great value stock at the moment.