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Are Investors Undervaluing Commercial Vehicle Group (CVGI) 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 Commercial Vehicle Group (CVGI - Free Report) . CVGI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.43, which compares to its industry's average of 20.52. Over the last 12 months, CVGI's Forward P/E has been as high as 12.38 and as low as 3.72, with a median of 7.94.
Investors will also notice that CVGI has a PEG ratio of 0.50. 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. CVGI's PEG compares to its industry's average PEG of 1.06. Over the last 12 months, CVGI's PEG has been as high as 0.59 and as low as 0.18, with a median of 0.38.
We should also highlight that CVGI has a P/B ratio of 2.63. 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. CVGI's current P/B looks attractive when compared to its industry's average P/B of 2.65. CVGI's P/B has been as high as 2.63 and as low as 1, with a median of 1.71, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CVGI has a P/S ratio of 0.35. This compares to its industry's average P/S of 0.76.
Value investors will likely look at more than just these metrics, but the above data helps show that Commercial Vehicle Group is likely undervalued currently. And when considering the strength of its earnings outlook, CVGI sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Commercial Vehicle Group (CVGI) 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 Commercial Vehicle Group (CVGI - Free Report) . CVGI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.43, which compares to its industry's average of 20.52. Over the last 12 months, CVGI's Forward P/E has been as high as 12.38 and as low as 3.72, with a median of 7.94.
Investors will also notice that CVGI has a PEG ratio of 0.50. 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. CVGI's PEG compares to its industry's average PEG of 1.06. Over the last 12 months, CVGI's PEG has been as high as 0.59 and as low as 0.18, with a median of 0.38.
We should also highlight that CVGI has a P/B ratio of 2.63. 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. CVGI's current P/B looks attractive when compared to its industry's average P/B of 2.65. CVGI's P/B has been as high as 2.63 and as low as 1, with a median of 1.71, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CVGI has a P/S ratio of 0.35. This compares to its industry's average P/S of 0.76.
Value investors will likely look at more than just these metrics, but the above data helps show that Commercial Vehicle Group is likely undervalued currently. And when considering the strength of its earnings outlook, CVGI sticks out at as one of the market's strongest value stocks.