Back to top

Image: Bigstock

Are Investors Undervaluing Japan Airlines (JAPSY) Right Now?

Read MoreHide Full Article

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, 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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Japan Airlines (JAPSY - Free Report) . JAPSY is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.56. This compares to its industry's average Forward P/E of 11.55. Over the past 52 weeks, JAPSY's Forward P/E has been as high as 10.92 and as low as 8.07, with a median of 9.51.

Investors should also recognize that JAPSY has a P/B ratio of 1.38. 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 3.64. Within the past 52 weeks, JAPSY's P/B has been as high as 1.41 and as low as 1.01, with a median of 1.17.

Finally, investors will want to recognize that JAPSY has a P/CF ratio of 5.06. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 7.59. Over the past 52 weeks, JAPSY's P/CF has been as high as 5.24 and as low as 3.89, with a median of 4.56.

Value investors will likely look at more than just these metrics, but the above data helps show that Japan Airlines is likely undervalued currently. And when considering the strength of its earnings outlook, JAPSY sticks out as one of the market's strongest value stocks.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Japan Airlines Ltd (JAPSY) - free report >>

Published in