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Is Dana (DAN) a Great Value Stock Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

One company to watch right now is Dana (DAN - Free Report) . DAN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 5.48 right now. For comparison, its industry sports an average P/E of 10.14. Over the past 52 weeks, DAN's Forward P/E has been as high as 9.45 and as low as 4.07, with a median of 6.28.

Another notable valuation metric for DAN is its P/B ratio of 1.83. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.17. Over the past 12 months, DAN's P/B has been as high as 3.53 and as low as 1.36, with a median of 2.23.

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. DAN has a P/S ratio of 0.33. This compares to its industry's average P/S of 0.4.

Finally, our model also underscores that DAN has a P/CF ratio of 3.79. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. DAN's current P/CF looks attractive when compared to its industry's average P/CF of 6.50. Over the past 52 weeks, DAN's P/CF has been as high as 11.31 and as low as 2.83, with a median of 6.25.

These are only a few of the key metrics included in Dana'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, DAN looks like an impressive value stock at the moment.


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