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Is Honda Motor Co. (HMC) Stock Undervalued 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 Honda Motor Co. (HMC - Free Report) . HMC is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 7.20, which compares to its industry's average of 8.88. Over the past year, HMC's Forward P/E has been as high as 9.18 and as low as 6.72, with a median of 7.65.
We also note that HMC holds a PEG ratio of 0.34. 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. HMC's PEG compares to its industry's average PEG of 0.47. HMC's PEG has been as high as 1.59 and as low as 0.32, with a median of 0.48, all within the past year.
Another notable valuation metric for HMC is its P/B ratio of 0.63. Investors use the P/B ratio to look at a stock's market value versus 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 1.39. Over the past 12 months, HMC's P/B has been as high as 0.70 and as low as 0.50, with a median of 0.59.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HMC has a P/S ratio of 0.42. This compares to its industry's average P/S of 0.75.
Finally, investors should note that HMC has a P/CF ratio of 4.40. 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. HMC's P/CF compares to its industry's average P/CF of 6.99. HMC's P/CF has been as high as 5.30 and as low as 3.81, with a median of 4.33, all within the past year.
Investors could also keep in mind Mercedes-Benz Group AG (MBGAF - Free Report) , an Automotive - Foreign stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Shares of Mercedes-Benz Group AG currently holds a Forward P/E ratio of 5.12, and its PEG ratio is 3.31. In comparison, its industry sports average P/E and PEG ratios of 8.88 and 0.47.
Over the past year, MBGAF's P/E has been as high as 6.09, as low as 4.29, with a median of 5.44; its PEG ratio has been as high as 3.83, as low as 2.54, with a median of 0.48 during the same time period.
Mercedes-Benz Group AG sports a P/B ratio of 0.69 as well; this compares to its industry's price-to-book ratio of 1.39. In the past 52 weeks, MBGAF's P/B has been as high as 0.95, as low as 0.63, with a median of 0.83.
These are only a few of the key metrics included in Honda Motor Co. and Mercedes-Benz Group AG strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, HMC and MBGAF look like an impressive value stock at the moment.
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Is Honda Motor Co. (HMC) Stock Undervalued Right Now?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 Honda Motor Co. (HMC - Free Report) . HMC is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 7.20, which compares to its industry's average of 8.88. Over the past year, HMC's Forward P/E has been as high as 9.18 and as low as 6.72, with a median of 7.65.
We also note that HMC holds a PEG ratio of 0.34. 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. HMC's PEG compares to its industry's average PEG of 0.47. HMC's PEG has been as high as 1.59 and as low as 0.32, with a median of 0.48, all within the past year.
Another notable valuation metric for HMC is its P/B ratio of 0.63. Investors use the P/B ratio to look at a stock's market value versus 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 1.39. Over the past 12 months, HMC's P/B has been as high as 0.70 and as low as 0.50, with a median of 0.59.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HMC has a P/S ratio of 0.42. This compares to its industry's average P/S of 0.75.
Finally, investors should note that HMC has a P/CF ratio of 4.40. 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. HMC's P/CF compares to its industry's average P/CF of 6.99. HMC's P/CF has been as high as 5.30 and as low as 3.81, with a median of 4.33, all within the past year.
Investors could also keep in mind Mercedes-Benz Group AG (MBGAF - Free Report) , an Automotive - Foreign stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Shares of Mercedes-Benz Group AG currently holds a Forward P/E ratio of 5.12, and its PEG ratio is 3.31. In comparison, its industry sports average P/E and PEG ratios of 8.88 and 0.47.
Over the past year, MBGAF's P/E has been as high as 6.09, as low as 4.29, with a median of 5.44; its PEG ratio has been as high as 3.83, as low as 2.54, with a median of 0.48 during the same time period.
Mercedes-Benz Group AG sports a P/B ratio of 0.69 as well; this compares to its industry's price-to-book ratio of 1.39. In the past 52 weeks, MBGAF's P/B has been as high as 0.95, as low as 0.63, with a median of 0.83.
These are only a few of the key metrics included in Honda Motor Co. and Mercedes-Benz Group AG strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, HMC and MBGAF look like an impressive value stock at the moment.