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Are Investors Undervaluing Bayerische Motoren Werke AG Sponsored ADR (BMWYY) 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.

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

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 Bayerische Motoren Werke AG Sponsored ADR (BMWYY - Free Report) . BMWYY 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 5.98 right now. For comparison, its industry sports an average P/E of 9.01. BMWYY's Forward P/E has been as high as 6.63 and as low as 4.12, with a median of 5.86, all within the past year.

Investors should also recognize that BMWYY has a P/B ratio of 0.63. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.38. Over the past year, BMWYY's P/B has been as high as 0.63 and as low as 0.62, with a median of 0.63.

Another great Automotive - Foreign stock you could consider is Toyota Motor (TM - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.

Shares of Toyota Motor currently holds a Forward P/E ratio of 9.39, and its PEG ratio is 0.38. In comparison, its industry sports average P/E and PEG ratios of 9.01 and 0.34.

Over the last 12 months, TM's P/E has been as high as 10.75, as low as 8.26, with a median of 9.31, and its PEG ratio has been as high as 2.51, as low as 0.38, with a median of 0.71.

Toyota Motor sports a P/B ratio of 1.11 as well; this compares to its industry's price-to-book ratio of 1.38. In the past 52 weeks, TM's P/B has been as high as 1.16, as low as 0.84, with a median of 0.97.

Value investors will likely look at more than just these metrics, but the above data helps show that Bayerische Motoren Werke AG Sponsored ADR and Toyota Motor are likely undervalued currently. And when considering the strength of its earnings outlook, BMWYY and TM sticks out as one of the market's strongest value stocks.


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