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Are Investors Undervaluing Volvo (VLVLY) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Volvo (VLVLY - Free Report) . VLVLY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 11.76 right now. For comparison, its industry sports an average P/E of 20.52. Over the last 12 months, VLVLY's Forward P/E has been as high as 12.33 and as low as 9.42, with a median of 10.68.
Investors will also notice that VLVLY has a PEG ratio of 0.70. 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. VLVLY's PEG compares to its industry's average PEG of 0.91. Over the past 52 weeks, VLVLY's PEG has been as high as 0.78 and as low as 0.58, with a median of 0.65.
Finally, our model also underscores that VLVLY has a P/CF ratio of 7.76. 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. VLVLY's P/CF compares to its industry's average P/CF of 28.25. Over the past 52 weeks, VLVLY's P/CF has been as high as 8.01 and as low as 6.31, with a median of 7.21.
These are only a few of the key metrics included in Volvo'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, VLVLY looks like an impressive value stock at the moment.
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Are Investors Undervaluing Volvo (VLVLY) Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Volvo (VLVLY - Free Report) . VLVLY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 11.76 right now. For comparison, its industry sports an average P/E of 20.52. Over the last 12 months, VLVLY's Forward P/E has been as high as 12.33 and as low as 9.42, with a median of 10.68.
Investors will also notice that VLVLY has a PEG ratio of 0.70. 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. VLVLY's PEG compares to its industry's average PEG of 0.91. Over the past 52 weeks, VLVLY's PEG has been as high as 0.78 and as low as 0.58, with a median of 0.65.
Finally, our model also underscores that VLVLY has a P/CF ratio of 7.76. 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. VLVLY's P/CF compares to its industry's average P/CF of 28.25. Over the past 52 weeks, VLVLY's P/CF has been as high as 8.01 and as low as 6.31, with a median of 7.21.
These are only a few of the key metrics included in Volvo'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, VLVLY looks like an impressive value stock at the moment.