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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 value investors might notice is Tata Motors . TTM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
We should also highlight that TTM has a P/B ratio of 0.61. 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. This stock's P/B looks attractive against its industry's average P/B of 0.95. Over the past 12 months, TTM's P/B has been as high as 1.23 and as low as 0.53, with a median of 0.65.
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. TTM has a P/S ratio of 0.22. This compares to its industry's average P/S of 0.36.
Value investors will likely look at more than just these metrics, but the above data helps show that Tata Motors is likely undervalued currently. And when considering the strength of its earnings outlook, TTM sticks out at as one of the market's strongest value stocks.
Image: Bigstock
Is Tata Motors (TTM) a Great Value Stock Right Now?
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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 value investors might notice is Tata Motors . TTM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
We should also highlight that TTM has a P/B ratio of 0.61. 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. This stock's P/B looks attractive against its industry's average P/B of 0.95. Over the past 12 months, TTM's P/B has been as high as 1.23 and as low as 0.53, with a median of 0.65.
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. TTM has a P/S ratio of 0.22. This compares to its industry's average P/S of 0.36.
Value investors will likely look at more than just these metrics, but the above data helps show that Tata Motors is likely undervalued currently. And when considering the strength of its earnings outlook, TTM sticks out at as one of the market's strongest value stocks.