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Is Gentherm (THRM) Stock Undervalued 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, 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 Gentherm (THRM - Free Report) . THRM is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 18.45, while its industry has an average P/E of 21.91. Over the past 52 weeks, THRM's Forward P/E has been as high as 23.31 and as low as 12.38, with a median of 18.57.

Finally, we should also recognize that THRM has a P/CF ratio of 15.96. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. THRM's current P/CF looks attractive when compared to its industry's average P/CF of 32.11. Over the past year, THRM's P/CF has been as high as 26.77 and as low as 13.51, with a median of 19.98.

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


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