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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
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 holds a P/E ratio of 4.52, while its industry has an average P/E of 10.14. DAN's Forward P/E has been as high as 7.63 and as low as 4.07, with a median of 5.71, all within the past year.
Another notable valuation metric for DAN is its P/B ratio of 1.44. 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 2.27. Over the past 12 months, DAN's P/B has been as high as 2.82 and as low as 1.36, with a median of 1.84.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DAN has a P/S ratio of 0.27. This compares to its industry's average P/S of 0.38.
Finally, our model also underscores that DAN has a P/CF ratio of 3.17. 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. DAN's P/CF compares to its industry's average P/CF of 5.67. Over the past year, DAN's P/CF has been as high as 8.75 and as low as 2.83, with a median of 4.37.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Dana is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DAN feels like a great value stock at the moment.
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Is Dana (DAN) Stock Undervalued 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
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 holds a P/E ratio of 4.52, while its industry has an average P/E of 10.14. DAN's Forward P/E has been as high as 7.63 and as low as 4.07, with a median of 5.71, all within the past year.
Another notable valuation metric for DAN is its P/B ratio of 1.44. 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 2.27. Over the past 12 months, DAN's P/B has been as high as 2.82 and as low as 1.36, with a median of 1.84.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DAN has a P/S ratio of 0.27. This compares to its industry's average P/S of 0.38.
Finally, our model also underscores that DAN has a P/CF ratio of 3.17. 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. DAN's P/CF compares to its industry's average P/CF of 5.67. Over the past year, DAN's P/CF has been as high as 8.75 and as low as 2.83, with a median of 4.37.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Dana is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DAN feels like a great value stock at the moment.