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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
BorgWarner (BWA - Free Report) is a stock many investors are watching right now. BWA is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.26, while its industry has an average P/E of 18.58. Over the past year, BWA's Forward P/E has been as high as 9.34 and as low as 5.66, with a median of 7.41.
Another valuation metric that we should highlight is BWA's P/B ratio of 1.58. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. BWA's current P/B looks attractive when compared to its industry's average P/B of 3.24. Within the past 52 weeks, BWA's P/B has been as high as 1.58 and as low as 0.93, with a median of 1.21.
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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BWA has a P/S ratio of 0.68. This compares to its industry's average P/S of 0.76.
Finally, our model also underscores that BWA has a P/CF ratio of 10.64. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 26.59. Within the past 12 months, BWA's P/CF has been as high as 10.69 and as low as 4.57, with a median of 6.56.
Strattec Security (STRT - Free Report) may be another strong Automotive - Original Equipment stock to add to your shortlist. STRT is a Zacks Rank of #1 (Strong Buy) stock with a Value grade of A.
Strattec Security is currently trading with a Forward P/E ratio of 16.18 while its PEG ratio sits at 1.62. Both of the company's metrics compare favorably to its industry's average P/E of 18.58 and average PEG ratio of 0.98.
Over the last 12 months, STRT's P/E has been as high as 20.21, as low as 8.54, with a median of 13.89, and its PEG ratio has been as high as 2.02, as low as 0.85, with a median of 1.39.
Strattec Security also has a P/B ratio of 1.19 compared to its industry's price-to-book ratio of 3.24. Over the past year, its P/B ratio has been as high as 1.38, as low as 0.58, with a median of 0.77.
These are just a handful of the figures considered in BorgWarner and Strattec Security's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BWA and STRT is an impressive value stock right now.
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Is BorgWarner (BWA) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
BorgWarner (BWA - Free Report) is a stock many investors are watching right now. BWA is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.26, while its industry has an average P/E of 18.58. Over the past year, BWA's Forward P/E has been as high as 9.34 and as low as 5.66, with a median of 7.41.
Another valuation metric that we should highlight is BWA's P/B ratio of 1.58. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. BWA's current P/B looks attractive when compared to its industry's average P/B of 3.24. Within the past 52 weeks, BWA's P/B has been as high as 1.58 and as low as 0.93, with a median of 1.21.
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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BWA has a P/S ratio of 0.68. This compares to its industry's average P/S of 0.76.
Finally, our model also underscores that BWA has a P/CF ratio of 10.64. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 26.59. Within the past 12 months, BWA's P/CF has been as high as 10.69 and as low as 4.57, with a median of 6.56.
Strattec Security (STRT - Free Report) may be another strong Automotive - Original Equipment stock to add to your shortlist. STRT is a Zacks Rank of #1 (Strong Buy) stock with a Value grade of A.
Strattec Security is currently trading with a Forward P/E ratio of 16.18 while its PEG ratio sits at 1.62. Both of the company's metrics compare favorably to its industry's average P/E of 18.58 and average PEG ratio of 0.98.
Over the last 12 months, STRT's P/E has been as high as 20.21, as low as 8.54, with a median of 13.89, and its PEG ratio has been as high as 2.02, as low as 0.85, with a median of 1.39.
Strattec Security also has a P/B ratio of 1.19 compared to its industry's price-to-book ratio of 3.24. Over the past year, its P/B ratio has been as high as 1.38, as low as 0.58, with a median of 0.77.
These are just a handful of the figures considered in BorgWarner and Strattec Security's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BWA and STRT is an impressive value stock right now.