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Are Investors Undervaluing GARRETT MOTION (GTX) 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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 GARRETT MOTION (GTX - Free Report) . GTX 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 9.45, which compares to its industry's average of 22.02. Over the past year, GTX's Forward P/E has been as high as 9.56 and as low as 5.83, with a median of 7.57.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. GTX has a P/S ratio of 0.78. This compares to its industry's average P/S of 0.8.

LCI Industries (LCII - Free Report) may be another strong Automotive - Original Equipment stock to add to your shortlist. LCII is a Zacks Rank of #2 (Buy) stock with a Value grade of A.

Additionally, LCI Industries has a P/B ratio of 1.78 while its industry's price-to-book ratio sits at 3.71. For LCII, this valuation metric has been as high as 2.27, as low as 1.39, with a median of 1.86 over the past year.

These are only a few of the key metrics included in GARRETT MOTION and LCI Industries strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, GTX and LCII look like an impressive value stock at the moment.


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