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Are Investors Undervaluing Nissan Motor Co. (NSANY) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 Nissan Motor Co. (NSANY - Free Report) . NSANY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 6.94 right now. For comparison, its industry sports an average P/E of 7.78. Over the past 52 weeks, NSANY's Forward P/E has been as high as 13.36 and as low as 5.16, with a median of 6.36.

Finally, our model also underscores that NSANY has a P/CF ratio of 2.19. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. NSANY's P/CF compares to its industry's average P/CF of 6.09. 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.

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


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