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Is Volvo (VLVLY) Stock Undervalued 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

Volvo (VLVLY - Free Report) is a stock many investors are watching right now. VLVLY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 11.53, while its industry has an average P/E of 16.57. Over the last 12 months, VLVLY's Forward P/E has been as high as 13.47 and as low as 8.95, with a median of 10.61.

Investors should also note that VLVLY holds a PEG ratio of 0.69. 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. VLVLY's industry has an average PEG of 0.87 right now. Over the past 52 weeks, VLVLY's PEG has been as high as 0.81 and as low as 0.54, with a median of 0.67.

Finally, investors should note that VLVLY has a P/CF ratio of 7.93. 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. VLVLY's P/CF compares to its industry's average P/CF of 21.90. Over the past 52 weeks, VLVLY's P/CF has been as high as 8.98 and as low as 6.31, with a median of 7.25.

Value investors will likely look at more than just these metrics, but the above data helps show that Volvo is likely undervalued currently. And when considering the strength of its earnings outlook, VLVLY sticks out at as one of the market's strongest value stocks.


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