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Are Investors Undervaluing Visteon (VC) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 value investors might notice is Visteon (VC - Free Report) . VC is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 13.35, which compares to its industry's average of 20.39. 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.

Investors should also recognize that VC has a P/B ratio of 2.2. 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. VC's current P/B looks attractive when compared to its industry's average P/B of 3.33. VC's P/B has been as high as 2.33 and as low as 1.31, with a median of 1.87, over the past year.

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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