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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Commercial Vehicle Group (CVGI - Free Report) is a stock many investors are watching right now. CVGI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.23, while its industry has an average P/E of 12.06. Over the past year, CVGI's Forward P/E has been as high as 10.50 and as low as 3.81, with a median of 6.15.
We also note that CVGI holds a PEG ratio of 0.92. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CVGI's PEG compares to its industry's average PEG of 1.34. Within the past year, CVGI's PEG has been as high as 0.93 and as low as 0.79, with a median of 0.84.
Another notable valuation metric for CVGI is its P/B ratio of 1.78. 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. CVGI's current P/B looks attractive when compared to its industry's average P/B of 2.46. CVGI's P/B has been as high as 2.37 and as low as 1.33, with a median of 1.83, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CVGI has a P/S ratio of 0.26. This compares to its industry's average P/S of 0.46.
Finally, our model also underscores that CVGI has a P/CF ratio of 4.27. 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. CVGI's P/CF compares to its industry's average P/CF of 6.75. Over the past year, CVGI's P/CF has been as high as 5.02 and as low as 2.85, with a median of 3.99.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Commercial Vehicle Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CVGI feels like a great value stock at the moment.