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Are Investors Undervaluing Nikon (NINOY) 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.

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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Nikon (NINOY - Free Report) . NINOY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.

Investors should also note that NINOY holds a PEG ratio of 0.61. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NINOY's PEG compares to its industry's average PEG of 1.04. Over the last 12 months, NINOY's PEG has been as high as 23.48 and as low as 0.57, with a median of 15.96.

Investors should also recognize that NINOY has a P/B ratio of 1.31. 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 solid versus its industry's average P/B of 2.46. Over the past 12 months, NINOY's P/B has been as high as 1.64 and as low as 1.14, with a median of 1.40.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. NINOY has a P/S ratio of 1.09. This compares to its industry's average P/S of 1.63.

Finally, investors will want to recognize that NINOY has a P/CF ratio of 10.51. 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. NINOY's current P/CF looks attractive when compared to its industry's average P/CF of 14.36. Within the past 12 months, NINOY's P/CF has been as high as 44.26 and as low as 9.13, with a median of 11.54.

These are only a few of the key metrics included in Nikon's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, NINOY looks like an impressive value stock at the moment.




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