We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Are Investors Undervaluing Subaru Corporation (FUJHY) Right Now?
Read MoreHide Full Article
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 stock to keep an eye on is Subaru Corporation (FUJHY - Free Report) . FUJHY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 5.38. This compares to its industry's average Forward P/E of 9.09. Over the last 12 months, FUJHY's Forward P/E has been as high as 8.20 and as low as 5.36, with a median of 6.81.
Investors will also notice that FUJHY has a PEG ratio of 0.21. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. FUJHY's PEG compares to its industry's average PEG of 0.34. Within the past year, FUJHY's PEG has been as high as 0.50 and as low as 0.21, with a median of 0.30.
Another valuation metric that we should highlight is FUJHY's P/B ratio of 0.85. The P/B ratio pits a stock's market value against 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 1.12. FUJHY's P/B has been as high as 1 and as low as 0.76, with a median of 0.86, over the past year.
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 0.44. This compares to its industry's average P/S of 0.69.
Finally, investors will want to recognize that FUJHY has a P/CF ratio of 3.59. 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 P/CF compares to its industry's average P/CF of 6.30. FUJHY's P/CF has been as high as 4.90 and as low as 3.47, with a median of 3.97, all within the past year.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Are Investors Undervaluing Subaru Corporation (FUJHY) 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 stock to keep an eye on is Subaru Corporation (FUJHY - Free Report) . FUJHY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 5.38. This compares to its industry's average Forward P/E of 9.09. Over the last 12 months, FUJHY's Forward P/E has been as high as 8.20 and as low as 5.36, with a median of 6.81.
Investors will also notice that FUJHY has a PEG ratio of 0.21. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. FUJHY's PEG compares to its industry's average PEG of 0.34. Within the past year, FUJHY's PEG has been as high as 0.50 and as low as 0.21, with a median of 0.30.
Another valuation metric that we should highlight is FUJHY's P/B ratio of 0.85. The P/B ratio pits a stock's market value against 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 1.12. FUJHY's P/B has been as high as 1 and as low as 0.76, with a median of 0.86, over the past year.
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 0.44. This compares to its industry's average P/S of 0.69.
Finally, investors will want to recognize that FUJHY has a P/CF ratio of 3.59. 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 P/CF compares to its industry's average P/CF of 6.30. FUJHY's P/CF has been as high as 4.90 and as low as 3.47, with a median of 3.97, all within the past year.
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.