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Should Value Investors Buy Volkswagen (VWAGY) Stock?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Volkswagen (VWAGY - Free Report) . VWAGY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 4.88. This compares to its industry's average Forward P/E of 9.35. Over the past year, VWAGY's Forward P/E has been as high as 5.57 and as low as 3.33, with a median of 4.22.
Finally, investors should note that VWAGY has a P/CF ratio of 1.78. 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. VWAGY's P/CF compares to its industry's average P/CF of 5.64. Over the past 52 weeks, VWAGY's P/CF has been as high as 2.09 and as low as 1.27, with a median of 1.67.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Volkswagen is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, VWAGY feels like a great value stock at the moment.
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Should Value Investors Buy Volkswagen (VWAGY) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Volkswagen (VWAGY - Free Report) . VWAGY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 4.88. This compares to its industry's average Forward P/E of 9.35. Over the past year, VWAGY's Forward P/E has been as high as 5.57 and as low as 3.33, with a median of 4.22.
Finally, investors should note that VWAGY has a P/CF ratio of 1.78. 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. VWAGY's P/CF compares to its industry's average P/CF of 5.64. Over the past 52 weeks, VWAGY's P/CF has been as high as 2.09 and as low as 1.27, with a median of 1.67.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Volkswagen is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, VWAGY feels like a great value stock at the moment.