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Should Value Investors Buy Garrett Motion (GTX) Stock?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Garrett Motion (GTX - Free Report) is a stock many investors are watching right now. GTX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.90, which compares to its industry's average of 15.99. Over the past year, GTX's Forward P/E has been as high as 10.29 and as low as 5.97, with a median of 7.16.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. 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 0.56. This compares to its industry's average P/S of 0.76.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Garrett Motion is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GTX feels like a great value stock at the moment.
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Should Value Investors Buy Garrett Motion (GTX) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Garrett Motion (GTX - Free Report) is a stock many investors are watching right now. GTX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.90, which compares to its industry's average of 15.99. Over the past year, GTX's Forward P/E has been as high as 10.29 and as low as 5.97, with a median of 7.16.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. 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 0.56. This compares to its industry's average P/S of 0.76.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Garrett Motion is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GTX feels like a great value stock at the moment.