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Are Investors Undervaluing NN Group (NNGRY) Right Now?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 stock to keep an eye on is NN Group (NNGRY - Free Report) . NNGRY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 4.87, while its industry has an average P/E of 7.43. Over the past year, NNGRY's Forward P/E has been as high as 9.33 and as low as 4.20, with a median of 7.67.

We also note that NNGRY holds a PEG ratio of 0.38. 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. NNGRY's industry has an average PEG of 0.64 right now. Within the past year, NNGRY's PEG has been as high as 4.67 and as low as 0.22, with a median of 0.37.

These are just a handful of the figures considered in NN Group'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 NNGRY is an impressive value stock right now.


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