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Should Value Investors Buy Isuzu Motors (ISUZY) Stock?

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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.

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.

One company to watch right now is Isuzu Motors (ISUZY - Free Report) . ISUZY is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.

We should also highlight that ISUZY has a P/B ratio of 0.87. 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. ISUZY's current P/B looks attractive when compared to its industry's average P/B of 1.09. Over the past 12 months, ISUZY's P/B has been as high as 1.02 and as low as 0.77, with a median of 0.90.

Finally, we should also recognize that ISUZY has a P/CF ratio of 5.46. 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 6.97. Over the past year, ISUZY's P/CF has been as high as 6.01 and as low as 4.98, with a median of 5.54.

If you're looking for another solid Automotive - Foreign value stock, take a look at Mazda Motor (MZDAY - Free Report) . MZDAY is a Zacks Rank of #1 (Strong Buy) stock with a Value score of A.

Mazda Motor also has a P/B ratio of 0.39 compared to its industry's price-to-book ratio of 1.09. Over the past year, its P/B ratio has been as high as 0.43, as low as 0.28, with a median of 0.35.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Isuzu Motors and Mazda Motor are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ISUZY and MZDAY feels like a great value stock at the moment.

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