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Are Investors Undervaluing Miller Industries (MLR) 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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Miller Industries (MLR - Free Report) . MLR is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 11.31 right now. For comparison, its industry sports an average P/E of 18.77. Over the past 52 weeks, MLR's Forward P/E has been as high as 14.10 and as low as 7.41, with a median of 11.73.

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. MLR has a P/S ratio of 0.51. This compares to its industry's average P/S of 0.74.

Another great Automotive - Original Equipment stock you could consider is Strattec Security (STRT - Free Report) , which is a Zacks Rank of #1 (Strong Buy) stock with a Value Score 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 18.77 and average PEG ratio of 0.91.

STRT's Forward P/E has been as high as 20.21 and as low as 8.54, with a median of 13.89. During the same time period, its PEG ratio has been as high as 2.02, as low as 0.85, with a median of 1.39.

Additionally, Strattec Security has a P/B ratio of 1.19 while its industry's price-to-book ratio sits at 3.28. For STRT, this valuation metric has been as high as 1.38, as low as 0.58, with a median of 0.77 over the past year.

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


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