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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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Dana (DAN - Free Report) . DAN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 15.91. This compares to its industry's average Forward P/E of 20.73. Over the past year, DAN's Forward P/E has been as high as 20.88 and as low as 7.18, with a median of 10.30.
Investors should also recognize that DAN has a P/B ratio of 1.46. 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. This company's current P/B looks solid when compared to its industry's average P/B of 3.10. Within the past 52 weeks, DAN's P/B has been as high as 1.70 and as low as 0.87, with a median of 1.27.
Finally, we should also recognize that DAN has a P/CF ratio of 14.95. 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 47.95. Over the past 52 weeks, DAN's P/CF has been as high as 18.03 and as low as 3.36, with a median of 7.52.
If you're looking for another solid Automotive - Original Equipment value stock, take a look at Lear (LEA - Free Report) . LEA is a # 2 (Buy) stock with a Value score of A.
Lear is currently trading with a Forward P/E ratio of 10.35 while its PEG ratio sits at 0.29. Both of the company's metrics compare favorably to its industry's average P/E of 20.73 and average PEG ratio of 0.97.
LEA's price-to-earnings ratio has been as high as 15.28 and as low as 9.10, with a median of 10.66, while its PEG ratio has been as high as 0.44 and as low as 0.24, with a median of 0.29, all within the past year.
Furthermore, Lear holds a P/B ratio of 1.67 and its industry's price-to-book ratio is 3.10. LEA's P/B has been as high as 2.04, as low as 1.40, with a median of 1.69 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Dana and Lear are likely undervalued currently. And when considering the strength of its earnings outlook, DAN and LEA sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing Dana (DAN) Right Now?
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Dana (DAN - Free Report) . DAN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 15.91. This compares to its industry's average Forward P/E of 20.73. Over the past year, DAN's Forward P/E has been as high as 20.88 and as low as 7.18, with a median of 10.30.
Investors should also recognize that DAN has a P/B ratio of 1.46. 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. This company's current P/B looks solid when compared to its industry's average P/B of 3.10. Within the past 52 weeks, DAN's P/B has been as high as 1.70 and as low as 0.87, with a median of 1.27.
Finally, we should also recognize that DAN has a P/CF ratio of 14.95. 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 47.95. Over the past 52 weeks, DAN's P/CF has been as high as 18.03 and as low as 3.36, with a median of 7.52.
If you're looking for another solid Automotive - Original Equipment value stock, take a look at Lear (LEA - Free Report) . LEA is a # 2 (Buy) stock with a Value score of A.
Lear is currently trading with a Forward P/E ratio of 10.35 while its PEG ratio sits at 0.29. Both of the company's metrics compare favorably to its industry's average P/E of 20.73 and average PEG ratio of 0.97.
LEA's price-to-earnings ratio has been as high as 15.28 and as low as 9.10, with a median of 10.66, while its PEG ratio has been as high as 0.44 and as low as 0.24, with a median of 0.29, all within the past year.
Furthermore, Lear holds a P/B ratio of 1.67 and its industry's price-to-book ratio is 3.10. LEA's P/B has been as high as 2.04, as low as 1.40, with a median of 1.69 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Dana and Lear are likely undervalued currently. And when considering the strength of its earnings outlook, DAN and LEA sticks out as one of the market's strongest value stocks.