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Are Investors Undervaluing Mercedes-Benz Group AG (MBGYY) 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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Mercedes-Benz Group AG (MBGYY - Free Report) . MBGYY is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 8.66 right now. For comparison, its industry sports an average P/E of 11.50. MBGYY's Forward P/E has been as high as 9.70 and as low as 5.04, with a median of 7.04, all within the past year.
Investors should also recognize that MBGYY has a P/B ratio of 0.55. 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. This stock's P/B looks attractive against its industry's average P/B of 1.12. Over the past year, MBGYY's P/B has been as high as 0.71 and as low as 0.49, with a median of 0.57.
Finally, investors will want to recognize that MBGYY has a P/CF ratio of 3.77. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.12. Over the past 52 weeks, MBGYY's P/CF has been as high as 4.14 and as low as 0.72, with a median of 3.07.
Investors could also keep in mind Suzuki Motor (SZKMY - Free Report) , another Automotive - Foreign stock with a Zacks Rank of #2 (Buy) and Value grade of A.
Furthermore, Suzuki Motor holds a P/B ratio of 1.10 and its industry's price-to-book ratio is 1.12. SZKMY's P/B has been as high as 1.11, as low as 0.82, with a median of 0.95 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Mercedes-Benz Group AG and Suzuki Motor are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MBGYY and SZKMY feels like a great value stock at the moment.
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Are Investors Undervaluing Mercedes-Benz Group AG (MBGYY) Right Now?
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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Mercedes-Benz Group AG (MBGYY - Free Report) . MBGYY is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 8.66 right now. For comparison, its industry sports an average P/E of 11.50. MBGYY's Forward P/E has been as high as 9.70 and as low as 5.04, with a median of 7.04, all within the past year.
Investors should also recognize that MBGYY has a P/B ratio of 0.55. 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. This stock's P/B looks attractive against its industry's average P/B of 1.12. Over the past year, MBGYY's P/B has been as high as 0.71 and as low as 0.49, with a median of 0.57.
Finally, investors will want to recognize that MBGYY has a P/CF ratio of 3.77. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.12. Over the past 52 weeks, MBGYY's P/CF has been as high as 4.14 and as low as 0.72, with a median of 3.07.
Investors could also keep in mind Suzuki Motor (SZKMY - Free Report) , another Automotive - Foreign stock with a Zacks Rank of #2 (Buy) and Value grade of A.
Furthermore, Suzuki Motor holds a P/B ratio of 1.10 and its industry's price-to-book ratio is 1.12. SZKMY's P/B has been as high as 1.11, as low as 0.82, with a median of 0.95 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Mercedes-Benz Group AG and Suzuki Motor are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MBGYY and SZKMY feels like a great value stock at the moment.