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Should Value Investors Buy Bayerische Motoren Werke AG Sponsored ADR (BMWYY) Stock?

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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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.

Bayerische Motoren Werke AG Sponsored ADR (BMWYY - Free Report) is a stock many investors are watching right now. BMWYY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 5.59 right now. For comparison, its industry sports an average P/E of 8.98. Over the past 52 weeks, BMWYY's Forward P/E has been as high as 6.63 and as low as 5.02, with a median of 5.86.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BMWYY has a P/S ratio of 0.4. This compares to its industry's average P/S of 0.94.

Honda Motor Co. (HMC - Free Report) may be another strong Automotive - Foreign stock to add to your shortlist. HMC is a # 2 (Buy) stock with a Value grade of A.

Shares of Honda Motor Co. currently holds a Forward P/E ratio of 7.46, and its PEG ratio is 0.35. In comparison, its industry sports average P/E and PEG ratios of 8.98 and 0.38.


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