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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, 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 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 a P/E ratio of 5.33, which compares to its industry's average of 8.88. BMWYY's Forward P/E has been as high as 6.63 and as low as 5.02, with a median of 5.81, all within the past year.
Another valuation metric that we should highlight is BMWYY's P/B ratio of 0.62. 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 stock's P/B looks solid versus its industry's average P/B of 1.40. Within the past 52 weeks, BMWYY's P/B has been as high as 0.76 and as low as 0.55, with a median of 0.66.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BMWYY has a P/S ratio of 0.38. This compares to its industry's average P/S of 0.83.
Finally, investors will want to recognize that BMWYY has a P/CF ratio of 3.07. 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. BMWYY's current P/CF looks attractive when compared to its industry's average P/CF of 7.02. Over the past year, BMWYY's P/CF has been as high as 3.85 and as low as 2.25, with a median of 3.22.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Bayerische Motoren Werke AG Sponsored ADR is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BMWYY feels like a great value stock at the moment.
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Should Value Investors Buy Bayerische Motoren Werke AG Sponsored ADR (BMWYY) Stock?
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, 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 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 a P/E ratio of 5.33, which compares to its industry's average of 8.88. BMWYY's Forward P/E has been as high as 6.63 and as low as 5.02, with a median of 5.81, all within the past year.
Another valuation metric that we should highlight is BMWYY's P/B ratio of 0.62. 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 stock's P/B looks solid versus its industry's average P/B of 1.40. Within the past 52 weeks, BMWYY's P/B has been as high as 0.76 and as low as 0.55, with a median of 0.66.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BMWYY has a P/S ratio of 0.38. This compares to its industry's average P/S of 0.83.
Finally, investors will want to recognize that BMWYY has a P/CF ratio of 3.07. 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. BMWYY's current P/CF looks attractive when compared to its industry's average P/CF of 7.02. Over the past year, BMWYY's P/CF has been as high as 3.85 and as low as 2.25, with a median of 3.22.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Bayerische Motoren Werke AG Sponsored ADR is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BMWYY feels like a great value stock at the moment.