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Should Value Investors Buy Gentherm (THRM) Stock?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 to watch right now is Gentherm (THRM - Free Report) . THRM is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 14.03 right now. For comparison, its industry sports an average P/E of 29.87. Over the past year, THRM's Forward P/E has been as high as 16.93 and as low as 8.71, with a median of 12.42.

We should also highlight that THRM has a P/B ratio of 1.5. The P/B is a method of comparing a stock's market value to 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 year, THRM's P/B has been as high as 2.70 and as low as 1.11, with a median of 1.85.

These are only a few of the key metrics included in Gentherm'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, THRM looks like an impressive value stock at the moment.


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