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Is Gentherm (THRM) a Great Value Stock Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 stock to keep an eye on is Gentherm (THRM - Free Report) . THRM is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 19.71. This compares to its industry's average Forward P/E of 20.81. THRM's Forward P/E has been as high as 24.16 and as low as 12.38, with a median of 18.78, all within the past year.

Finally, investors will want to recognize that THRM has a P/CF ratio of 16.77. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 31.79. THRM's P/CF has been as high as 29.43 and as low as 13.51, with a median of 20.64, all within the past year.

These are only a few of the key metrics included in Gentherm'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, THRM looks like an impressive value stock at the moment.


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