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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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Dana (DAN - Free Report) . DAN is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 11.02, which compares to its industry's average of 19.23. DAN's Forward P/E has been as high as 13.55 and as low as 5.44, with a median of 8.40, all within the past year.
DAN is also sporting a PEG ratio of 1.06. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DAN's industry currently sports an average PEG of 1.37. Within the past year, DAN's PEG has been as high as 1.09 and as low as 0.27, with a median of 0.46.
Investors should also recognize that DAN has a P/B ratio of 1.74. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. DAN's current P/B looks attractive when compared to its industry's average P/B of 3.35. DAN's P/B has been as high as 1.78 and as low as 0.72, with a median of 1.14, over 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. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DAN has a P/S ratio of 0.25. This compares to its industry's average P/S of 0.6.
GARRETT MOTION (GTX - Free Report) may be another strong Automotive - Original Equipment stock to add to your shortlist. GTX is a Zacks Rank of #2 (Buy) stock with a Value grade of A.
Additionally, GARRETT MOTION has a P/B ratio of -2.89 while its industry's price-to-book ratio sits at 3.35. For GTX, this valuation metric has been as high as -2.01, as low as -3.49, with a median of -2.61 over the past year.
These are only a few of the key metrics included in Dana and GARRETT MOTION strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, DAN and GTX look like an impressive value stock at the moment.
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Are Investors Undervaluing Dana (DAN) Right Now?
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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Dana (DAN - Free Report) . DAN is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 11.02, which compares to its industry's average of 19.23. DAN's Forward P/E has been as high as 13.55 and as low as 5.44, with a median of 8.40, all within the past year.
DAN is also sporting a PEG ratio of 1.06. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DAN's industry currently sports an average PEG of 1.37. Within the past year, DAN's PEG has been as high as 1.09 and as low as 0.27, with a median of 0.46.
Investors should also recognize that DAN has a P/B ratio of 1.74. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. DAN's current P/B looks attractive when compared to its industry's average P/B of 3.35. DAN's P/B has been as high as 1.78 and as low as 0.72, with a median of 1.14, over 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. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DAN has a P/S ratio of 0.25. This compares to its industry's average P/S of 0.6.
GARRETT MOTION (GTX - Free Report) may be another strong Automotive - Original Equipment stock to add to your shortlist. GTX is a Zacks Rank of #2 (Buy) stock with a Value grade of A.
Additionally, GARRETT MOTION has a P/B ratio of -2.89 while its industry's price-to-book ratio sits at 3.35. For GTX, this valuation metric has been as high as -2.01, as low as -3.49, with a median of -2.61 over the past year.
These are only a few of the key metrics included in Dana and GARRETT MOTION strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, DAN and GTX look like an impressive value stock at the moment.