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Should Value Investors Buy Subaru Corporation (FUJHY) Stock?
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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.
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Subaru Corporation (FUJHY - Free Report) . FUJHY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 6.06. This compares to its industry's average Forward P/E of 8.87. Over the last 12 months, FUJHY's Forward P/E has been as high as 8.20 and as low as 5.29, with a median of 6.81.
We also note that FUJHY holds a PEG ratio of 0.24. 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. FUJHY's PEG compares to its industry's average PEG of 0.47. Within the past year, FUJHY's PEG has been as high as 0.50 and as low as 0.21, with a median of 0.29.
Another valuation metric that we should highlight is FUJHY's P/B ratio of 0.94. The P/B ratio pits a stock's market value against 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 1.40. Over the past 12 months, FUJHY's P/B has been as high as 1 and as low as 0.76, with a median of 0.87.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FUJHY has a P/S ratio of 0.48. This compares to its industry's average P/S of 0.75.
Finally, our model also underscores that FUJHY has a P/CF ratio of 4.07. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 7. FUJHY's P/CF has been as high as 4.50 and as low as 3.46, with a median of 3.91, all within the past year.
These are just a handful of the figures considered in Subaru Corporation's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that FUJHY is an impressive value stock right now.
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Should Value Investors Buy Subaru Corporation (FUJHY) Stock?
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.
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Subaru Corporation (FUJHY - Free Report) . FUJHY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 6.06. This compares to its industry's average Forward P/E of 8.87. Over the last 12 months, FUJHY's Forward P/E has been as high as 8.20 and as low as 5.29, with a median of 6.81.
We also note that FUJHY holds a PEG ratio of 0.24. 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. FUJHY's PEG compares to its industry's average PEG of 0.47. Within the past year, FUJHY's PEG has been as high as 0.50 and as low as 0.21, with a median of 0.29.
Another valuation metric that we should highlight is FUJHY's P/B ratio of 0.94. The P/B ratio pits a stock's market value against 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 1.40. Over the past 12 months, FUJHY's P/B has been as high as 1 and as low as 0.76, with a median of 0.87.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FUJHY has a P/S ratio of 0.48. This compares to its industry's average P/S of 0.75.
Finally, our model also underscores that FUJHY has a P/CF ratio of 4.07. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 7. FUJHY's P/CF has been as high as 4.50 and as low as 3.46, with a median of 3.91, all within the past year.
These are just a handful of the figures considered in Subaru Corporation's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that FUJHY is an impressive value stock right now.