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Should Value Investors Buy Nissan Motor Co. (NSANY) Stock?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Nissan Motor Co. (NSANY - Free Report) is a stock many investors are watching right now. 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 6.15 right now. For comparison, its industry sports an average P/E of 9.38. 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 6.27.

Finally, our model also underscores that NSANY has a P/CF ratio of 2.35. 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. NSANY's P/CF compares to its industry's average P/CF of 6.71. 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 2.13.

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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