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Is Mitsubishi Heavy Industries, Ltd. (MHVYF) 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.

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.

Mitsubishi Heavy Industries, Ltd. (MHVYF - Free Report) is a stock many investors are watching right now. MHVYF is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 18.44. This compares to its industry's average Forward P/E of 19.23. Over the past 52 weeks, MHVYF's Forward P/E has been as high as 19.08 and as low as 16.11, with a median of 17.78.

Investors will also notice that MHVYF has a PEG ratio of 0.71. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MHVYF's PEG compares to its industry's average PEG of 1.73. Over the past 52 weeks, MHVYF's PEG has been as high as 0.74 and as low as 0.63, with a median of 0.69.

Finally, investors should note that MHVYF has a P/CF ratio of 5.04. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.81. Within the past 12 months, MHVYF's P/CF has been as high as 5.55 and as low as 4.47, with a median of 5.22.

Value investors will likely look at more than just these metrics, but the above data helps show that Mitsubishi Heavy Industries, Ltd. Is likely undervalued currently. And when considering the strength of its earnings outlook, MHVYF sticks out at as one of the market's strongest value stocks.


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