Value investing is easily one of the most popular ways to find great stocks in any market environment. After all, who wouldn’t want to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts when compared to fair value?
One way to find these companies is by looking at several key metrics and financial ratios, many of which are crucial in the value stock selection process. Let’s put Daimler AG stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks:
PE Ratio
A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. This shows us how much investors are willing to pay for each dollar of earnings in a given stock and is easily one of the most popular financial ratios in the world. The best use of the PE ratio is to compare the stock’s current PE ratio with: a) where this ratio has been in the past; b) how it compares to the average for the industry/sector; and c) how it compares to the market as a whole.
On this front, Daimler has a trailing twelve months PE ratio of 7.3, as you can see in the chart below:
This level actually compares pretty favorably with the market at large, as the PE for the S&P 500 stands at about 19.9 If we focus on the long-term PE trend, Daimler’s current PE level puts it below its midpoint of 8.9 over the past five years. Moreover, the current level stands well below the highs for the stock, suggesting that it could be a solid entry point.
Further, the stock’s PE also compares favorably with the Zacks Auto - Tires - Trucks sector’s trailing twelve months PE ratio, which stands at 10.4. At the very least, this indicates that the stock is relatively undervalued right now, compared to its peers.
We should also point out that Great Southern Bancorp’s forward PE is roughly same as its trailing twelve months value, so we might say that the forward earnings estimates are incorporated in the company’s share price as of now. We define forward PE as current price relative to the Zacks Consensus Estimate for the current fiscal year.
P/S Ratio
Another key metric to note is the Price/Sales ratio. This approach compares a given stock’s price to its total sales, where a lower reading is generally considered better. Some people like this metric more than other value-focused ones because it looks at sales, something that is far harder to manipulate with accounting tricks than earnings.
Right now, Daimler has a P/S ratio of about 0.5. This is much lower than the S&P 500 average, which comes in at 3.2 right now. Also, as we can see in the chart below, this is pegged below the highs for this stock in particular over the past few years.
Broad Value Outlook
In aggregate, Daimler currently has a Value Score of A, putting it into the top 20% of all stocks we cover from this look. This makes Daimler a solid choice for value investors.
What About the Stock Overall?
Though Daimler might be a good choice for value investors, there are plenty of other factors to consider before investing in this name. In particular, it is worth noting that the company has a Growth Score of B and a Momentum Score of F. This gives DDAIF a Zacks VGM score — or its overarching fundamental grade — of B. (You can read more about the Zacks Style Scores here >>)
Meanwhile, the company’s recent earnings estimates have been encouraging. The full year estimate has seen two upward and no downward revisions in the past 60 days. This has had a solid impact on the consensus estimate as the full year estimate has gone up by 8.8% over the past two months. You can see the consensus estimate trend and recent price action for the stock in the chart below:
This bullish trend is why the stock sports a Zacks Rank #2 (Buy) and why we are looking for outperformance from the company in the near term.
Bottom Line
Daimler is an inspired choice for value investors, as it is hard to beat its incredible lineup of statistics on this front. Moreover, this Zacks Rank #2 company possesses an impressive industry rank (top 11% out of more than 250 Zacks industries), which highlights favorable broader factors.
So, it might pay for value investors to delve deeper into the company’s prospects, as fundamentals indicate that this stock could be a compelling pick.
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Is Daimler (DDAIF) a Great Stock for Value Investors?
Value investing is easily one of the most popular ways to find great stocks in any market environment. After all, who wouldn’t want to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts when compared to fair value?
One way to find these companies is by looking at several key metrics and financial ratios, many of which are crucial in the value stock selection process. Let’s put Daimler AG stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks:
PE Ratio
A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. This shows us how much investors are willing to pay for each dollar of earnings in a given stock and is easily one of the most popular financial ratios in the world. The best use of the PE ratio is to compare the stock’s current PE ratio with: a) where this ratio has been in the past; b) how it compares to the average for the industry/sector; and c) how it compares to the market as a whole.
On this front, Daimler has a trailing twelve months PE ratio of 7.3, as you can see in the chart below:
This level actually compares pretty favorably with the market at large, as the PE for the S&P 500 stands at about 19.9 If we focus on the long-term PE trend, Daimler’s current PE level puts it below its midpoint of 8.9 over the past five years. Moreover, the current level stands well below the highs for the stock, suggesting that it could be a solid entry point.
Further, the stock’s PE also compares favorably with the Zacks Auto - Tires - Trucks sector’s trailing twelve months PE ratio, which stands at 10.4. At the very least, this indicates that the stock is relatively undervalued right now, compared to its peers.
We should also point out that Great Southern Bancorp’s forward PE is roughly same as its trailing twelve months value, so we might say that the forward earnings estimates are incorporated in the company’s share price as of now. We define forward PE as current price relative to the Zacks Consensus Estimate for the current fiscal year.
P/S Ratio
Another key metric to note is the Price/Sales ratio. This approach compares a given stock’s price to its total sales, where a lower reading is generally considered better. Some people like this metric more than other value-focused ones because it looks at sales, something that is far harder to manipulate with accounting tricks than earnings.
Right now, Daimler has a P/S ratio of about 0.5. This is much lower than the S&P 500 average, which comes in at 3.2 right now. Also, as we can see in the chart below, this is pegged below the highs for this stock in particular over the past few years.
Broad Value Outlook
In aggregate, Daimler currently has a Value Score of A, putting it into the top 20% of all stocks we cover from this look. This makes Daimler a solid choice for value investors.
What About the Stock Overall?
Though Daimler might be a good choice for value investors, there are plenty of other factors to consider before investing in this name. In particular, it is worth noting that the company has a Growth Score of B and a Momentum Score of F. This gives DDAIF a Zacks VGM score — or its overarching fundamental grade — of B. (You can read more about the Zacks Style Scores here >>)
Meanwhile, the company’s recent earnings estimates have been encouraging. The full year estimate has seen two upward and no downward revisions in the past 60 days. This has had a solid impact on the consensus estimate as the full year estimate has gone up by 8.8% over the past two months. You can see the consensus estimate trend and recent price action for the stock in the chart below:
Daimler AG Price and Consensus
Daimler AG Price and Consensus | Daimler AG Quote
This bullish trend is why the stock sports a Zacks Rank #2 (Buy) and why we are looking for outperformance from the company in the near term.
Bottom Line
Daimler is an inspired choice for value investors, as it is hard to beat its incredible lineup of statistics on this front. Moreover, this Zacks Rank #2 company possesses an impressive industry rank (top 11% out of more than 250 Zacks industries), which highlights favorable broader factors.
So, it might pay for value investors to delve deeper into the company’s prospects, as fundamentals indicate that this stock could be a compelling pick.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>