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

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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.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

Dana (DAN - Free Report) is a stock many investors are watching right now. DAN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 5.17. This compares to its industry's average Forward P/E of 10.87. Over the past 52 weeks, DAN's Forward P/E has been as high as 7.01 and as low as 4.07, with a median of 5.47.

Another notable valuation metric for DAN is its P/B ratio of 1.65. 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 company's current P/B looks solid when compared to its industry's average P/B of 2.46. DAN's P/B has been as high as 2.53 and as low as 1.36, with a median of 1.78, over the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DAN has a P/S ratio of 0.32. This compares to its industry's average P/S of 0.42.

Finally, investors will want to recognize that DAN has a P/CF ratio of 3.64. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 6.13. DAN's P/CF has been as high as 7.85 and as low as 2.83, with a median of 4.18, all within the past year.

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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