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Are Investors Undervaluing Strattec Security (STRT) Right Now?
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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.
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Strattec Security (STRT - Free Report) . STRT 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 16.18, which compares to its industry's average of 17.94. STRT's Forward P/E has been as high as 20.21 and as low as 8.54, with a median of 13.89, all within the past year.
Investors should also recognize that STRT has a P/B ratio of 1.19. 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. STRT's current P/B looks attractive when compared to its industry's average P/B of 3.01. Within the past 52 weeks, STRT's P/B has been as high as 1.38 and as low as 0.58, with a median of 0.77.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. STRT has a P/S ratio of 0.47. This compares to its industry's average P/S of 0.73.
Value investors will likely look at more than just these metrics, but the above data helps show that Strattec Security is likely undervalued currently. And when considering the strength of its earnings outlook, STRT sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing Strattec Security (STRT) Right Now?
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.
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Strattec Security (STRT - Free Report) . STRT 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 16.18, which compares to its industry's average of 17.94. STRT's Forward P/E has been as high as 20.21 and as low as 8.54, with a median of 13.89, all within the past year.
Investors should also recognize that STRT has a P/B ratio of 1.19. 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. STRT's current P/B looks attractive when compared to its industry's average P/B of 3.01. Within the past 52 weeks, STRT's P/B has been as high as 1.38 and as low as 0.58, with a median of 0.77.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. STRT has a P/S ratio of 0.47. This compares to its industry's average P/S of 0.73.
Value investors will likely look at more than just these metrics, but the above data helps show that Strattec Security is likely undervalued currently. And when considering the strength of its earnings outlook, STRT sticks out as one of the market's strongest value stocks.