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Should Value Investors Buy Garrett Motion (GTX) Stock?
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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 Garrett Motion (GTX - Free Report) . GTX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.05 right now. For comparison, its industry sports an average P/E of 16.55. GTX's Forward P/E has been as high as 10.29 and as low as 5.97, with a median of 7.16, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. GTX has a P/S ratio of 0.55. This compares to its industry's average P/S of 0.76.
Finally, we should also recognize that GTX has a P/CF ratio of 6.20. 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. GTX's P/CF compares to its industry's average P/CF of 21.81. GTX's P/CF has been as high as 6.55 and as low as 1.07, with a median of 4.51, all within the past year.
These are only a few of the key metrics included in Garrett Motion'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, GTX looks like an impressive value stock at the moment.
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Should Value Investors Buy Garrett Motion (GTX) Stock?
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 Garrett Motion (GTX - Free Report) . GTX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.05 right now. For comparison, its industry sports an average P/E of 16.55. GTX's Forward P/E has been as high as 10.29 and as low as 5.97, with a median of 7.16, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. GTX has a P/S ratio of 0.55. This compares to its industry's average P/S of 0.76.
Finally, we should also recognize that GTX has a P/CF ratio of 6.20. 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. GTX's P/CF compares to its industry's average P/CF of 21.81. GTX's P/CF has been as high as 6.55 and as low as 1.07, with a median of 4.51, all within the past year.
These are only a few of the key metrics included in Garrett Motion'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, GTX looks like an impressive value stock at the moment.