Back to top

Are Investors Undervaluing Nissan (NSANY) Right Now?

Read MoreHide Full Article

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

Nissan (NSANY - Free Report) is a stock many investors are watching right now. NSANY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 7.31, which compares to its industry's average of 7.50. Over the past 52 weeks, NSANY's Forward P/E has been as high as 8.68 and as low as 6.03, with a median of 7.89.

Investors should also recognize that NSANY has a P/B ratio of 0.73. 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 0.98. NSANY's P/B has been as high as 0.94 and as low as 0.71, with a median of 0.79, over the past year.

Finally, investors should note that NSANY has a P/CF ratio of 2.48. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. NSANY's current P/CF looks attractive when compared to its industry's average P/CF of 3.69. Over the past year, NSANY's P/CF has been as high as 2.93 and as low as 2.44, with a median of 2.73.

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

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Nissan Motor Co. (NSANY) - free report >>

More from Zacks Tale of the Tape

You May Like