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Should Value Investors Buy Subaru Corporation (FUJHY) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 Subaru Corporation (FUJHY - Free Report) . FUJHY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.78. This compares to its industry's average Forward P/E of 9.06. Over the last 12 months, FUJHY's Forward P/E has been as high as 8.20 and as low as 5.76, with a median of 6.92.

Investors should also note that FUJHY holds a PEG ratio of 0.29. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FUJHY's PEG compares to its industry's average PEG of 0.44. Within the past year, FUJHY's PEG has been as high as 0.50 and as low as 0.11, with a median of 0.30.

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. FUJHY has a P/S ratio of 0.48. This compares to its industry's average P/S of 0.69.

Finally, investors should note that FUJHY has a P/CF ratio of 4.18. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. FUJHY's current P/CF looks attractive when compared to its industry's average P/CF of 6.75. Within the past 12 months, FUJHY's P/CF has been as high as 5.53 and as low as 3.59, with a median of 4.38.

These are only a few of the key metrics included in Subaru Corporation'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, FUJHY looks like an impressive value stock at the moment.


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