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Is Denso (DNZOY) Stock Undervalued 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

Denso (DNZOY - Free Report) is a stock many investors are watching right now. DNZOY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

DNZOY is also sporting a PEG ratio of 0.96. 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. DNZOY's PEG compares to its industry's average PEG of 1.19. Within the past year, DNZOY's PEG has been as high as 2.46 and as low as 0.96, with a median of 1.93.

Another notable valuation metric for DNZOY is its P/B ratio of 0.98. 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 company's current P/B looks solid when compared to its industry's average P/B of 2.48. Over the past year, DNZOY's P/B has been as high as 1.20 and as low as 0.89, with a median of 1.04.

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


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