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Are Investors Undervaluing Subaru Corporation (FUJHY) 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.
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.
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 Subaru Corporation (FUJHY - Free Report) . FUJHY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 6.50 right now. For comparison, its industry sports an average P/E of 9.48. 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 6.80.
Investors should also note that FUJHY holds a PEG ratio of 0.27. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. FUJHY's industry has an average PEG of 0.50 right now. 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 1.03. 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 1.53. Within the past 52 weeks, FUJHY's P/B has been as high as 1.03 and as low as 0.76, with a median of 0.87.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. FUJHY has a P/S ratio of 0.52. This compares to its industry's average P/S of 0.85.
Finally, investors will want to recognize that FUJHY has a P/CF ratio of 4.44. 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 7.70. Over the past 52 weeks, FUJHY's P/CF has been as high as 4.50 and as low as 3.46, with a median of 3.91.
These are only a few of the key metrics included in Subaru Corporation's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, FUJHY looks like an impressive value stock at the moment.
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Are Investors Undervaluing Subaru Corporation (FUJHY) Right Now?
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, 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.
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 Subaru Corporation (FUJHY - Free Report) . FUJHY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 6.50 right now. For comparison, its industry sports an average P/E of 9.48. 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 6.80.
Investors should also note that FUJHY holds a PEG ratio of 0.27. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. FUJHY's industry has an average PEG of 0.50 right now. 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 1.03. 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 1.53. Within the past 52 weeks, FUJHY's P/B has been as high as 1.03 and as low as 0.76, with a median of 0.87.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. FUJHY has a P/S ratio of 0.52. This compares to its industry's average P/S of 0.85.
Finally, investors will want to recognize that FUJHY has a P/CF ratio of 4.44. 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 7.70. Over the past 52 weeks, FUJHY's P/CF has been as high as 4.50 and as low as 3.46, with a median of 3.91.
These are only a few of the key metrics included in Subaru Corporation's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, FUJHY looks like an impressive value stock at the moment.