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Are Investors Undervaluing Suzuki Motor (SZKMY) Right Now?

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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.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

Suzuki Motor (SZKMY - Free Report) is a stock many investors are watching right now. SZKMY is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 11.02 right now. For comparison, its industry sports an average P/E of 11.55. SZKMY's Forward P/E has been as high as 11.75 and as low as 7.06, with a median of 8.57, all within the past year.

We should also highlight that SZKMY has a P/B ratio of 1.1. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.27. Over the past year, SZKMY's P/B has been as high as 1.11 and as low as 0.82, with a median of 0.95.

Another great Automotive - Foreign stock you could consider is Yamaha Motor Co. (YMHAY - Free Report) , which is a Zacks Rank of #2 (Buy) stock with a Value Score of A.

Additionally, Yamaha Motor Co. has a P/B ratio of 0.91 while its industry's price-to-book ratio sits at 1.27. For YMHAY, this valuation metric has been as high as 1.20, as low as 0.80, with a median of 0.97 over the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Suzuki Motor and Yamaha Motor Co. are likely undervalued currently. And when considering the strength of its earnings outlook, SZKMY and YMHAY sticks out as one of the market's strongest value stocks.

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