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Is Nissan Motor Co. (NSANY) Stock Undervalued Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is Nissan Motor Co. (NSANY - Free Report) . NSANY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 5.25. This compares to its industry's average Forward P/E of 8.82. Over the past year, NSANY's Forward P/E has been as high as 13.36 and as low as 5.18, with a median of 6.34.

Investors will also notice that NSANY has a PEG ratio of 0.18. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NSANY's industry currently sports an average PEG of 0.36. Over the last 12 months, NSANY's PEG has been as high as 0.61 and as low as 0.18, with a median of 0.25.

Finally, investors should note that NSANY has a P/CF ratio of 2.14. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. NSANY's P/CF compares to its industry's average P/CF of 6.46. NSANY's P/CF has been as high as 2.68 and as low as 1.89, with a median of 2.22, all within the past year.

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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