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Should Value Investors Buy Volvo (VLVLY) 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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 Volvo (VLVLY - Free Report) . VLVLY 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 11.40 right now. For comparison, its industry sports an average P/E of 20.03. Over the past 52 weeks, VLVLY's Forward P/E has been as high as 12.77 and as low as 8.95, with a median of 10.61.

Investors will also notice that VLVLY has a PEG ratio of 0.68. 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. VLVLY's PEG compares to its industry's average PEG of 1.10. Within the past year, VLVLY's PEG has been as high as 0.78 and as low as 0.54, with a median of 0.67.

These are just a handful of the figures considered in Volvo'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 VLVLY is an impressive value stock right now.


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