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Are Investors Undervaluing Niu Technologies (NIU) 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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 Niu Technologies (NIU - Free Report) . NIU is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 12.40 right now. For comparison, its industry sports an average P/E of 21.22. Over the past 52 weeks, NIU's Forward P/E has been as high as 36.71 and as low as 5.74, with a median of 11.52.

Another valuation metric that we should highlight is NIU's P/B ratio of 1.59. 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 attractive against its industry's average P/B of 2.63. Over the past year, NIU's P/B has been as high as 3.62 and as low as 1.07, with a median of 1.97.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. NIU has a P/S ratio of 0.67. This compares to its industry's average P/S of 0.79.

Finally, we should also recognize that NIU has a P/CF ratio of 22.56. 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 stock's P/CF looks attractive against its industry's average P/CF of 52.53. Over the past year, NIU's P/CF has been as high as 34.93 and as low as 9.46, with a median of 16.21.

These are only a few of the key metrics included in Niu Technologies's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, NIU looks like an impressive value stock at the moment.


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