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Are Investors Undervaluing Mazda Motor (MZDAY) Right Now?

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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.

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 value investors might notice is Mazda Motor (MZDAY - Free Report) . MZDAY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 6.69 right now. For comparison, its industry sports an average P/E of 9.70. MZDAY's Forward P/E has been as high as 7.65 and as low as 4.44, with a median of 5.91, all within the past year.

Finally, investors should note that MZDAY has a P/CF ratio of 3.55. 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. MZDAY's current P/CF looks attractive when compared to its industry's average P/CF of 7.03. Over the past 52 weeks, MZDAY's P/CF has been as high as 4.20 and as low as 2.17, with a median of 3.07.

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


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