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Should Value Investors Buy Motorcar Parts of America (MPAA) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
Motorcar Parts of America (MPAA - Free Report) is a stock many investors are watching right now. MPAA is currently sporting a Zacks Rank #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 6.7, which compares to its industry's average of 9.30. Over the past year, MPAA's Forward P/E has been as high as 21.89 and as low as 5.81, with a median of 8.60.
Another valuation metric that we should highlight is MPAA's P/B ratio of 0.85. 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 stock's P/B looks solid versus its industry's average P/B of 1.53. MPAA's P/B has been as high as 0.94 and as low as 0.39, with a median of 0.60, over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Motorcar Parts of America is likely undervalued currently. And when considering the strength of its earnings outlook, MPAA sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy Motorcar Parts of America (MPAA) Stock?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
Motorcar Parts of America (MPAA - Free Report) is a stock many investors are watching right now. MPAA is currently sporting a Zacks Rank #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 6.7, which compares to its industry's average of 9.30. Over the past year, MPAA's Forward P/E has been as high as 21.89 and as low as 5.81, with a median of 8.60.
Another valuation metric that we should highlight is MPAA's P/B ratio of 0.85. 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 stock's P/B looks solid versus its industry's average P/B of 1.53. MPAA's P/B has been as high as 0.94 and as low as 0.39, with a median of 0.60, over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Motorcar Parts of America is likely undervalued currently. And when considering the strength of its earnings outlook, MPAA sticks out as one of the market's strongest value stocks.