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Should Value Investors Buy Visteon (VC) 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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

One stock to keep an eye on is Visteon (VC - Free Report) . VC is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 13.83, which compares to its industry's average of 21.93. Over the last 12 months, VC's Forward P/E has been as high as 14.33 and as low as 8.02, with a median of 10.30.

Another valuation metric that we should highlight is VC's P/B ratio of 2.15. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.70. Over the past 12 months, VC's P/B has been as high as 2.66 and as low as 1.31, with a median of 1.88.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Visteon is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, VC feels like a great value stock at the moment.


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