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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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
One stock to keep an eye on is Volvo (VLVLY - Free Report) . VLVLY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.98 right now. For comparison, its industry sports an average P/E of 19.07. VLVLY's Forward P/E has been as high as 12.33 and as low as 7.86, with a median of 10.75, all within the past year.
VLVLY is also sporting a PEG ratio of 0.63. 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. VLVLY's industry has an average PEG of 0.86 right now. VLVLY's PEG has been as high as 0.78 and as low as 0.51, with a median of 0.64, all within the past year.
We should also highlight that VLVLY has a P/B ratio of 2.43. 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 attractive against its industry's average P/B of 2.96. Over the past 12 months, VLVLY's P/B has been as high as 2.63 and as low as 1.78, with a median of 2.36.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. VLVLY has a P/S ratio of 0.84. This compares to its industry's average P/S of 0.9.
Finally, our model also underscores that VLVLY has a P/CF ratio of 7.25. 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 27.94. Over the past year, VLVLY's P/CF has been as high as 8.01 and as low as 4.98, with a median of 7.04.
These are only a few of the key metrics included in Volvo'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, VLVLY looks like an impressive value stock at the moment.
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Is Volvo (VLVLY) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
One stock to keep an eye on is Volvo (VLVLY - Free Report) . VLVLY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.98 right now. For comparison, its industry sports an average P/E of 19.07. VLVLY's Forward P/E has been as high as 12.33 and as low as 7.86, with a median of 10.75, all within the past year.
VLVLY is also sporting a PEG ratio of 0.63. 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. VLVLY's industry has an average PEG of 0.86 right now. VLVLY's PEG has been as high as 0.78 and as low as 0.51, with a median of 0.64, all within the past year.
We should also highlight that VLVLY has a P/B ratio of 2.43. 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 attractive against its industry's average P/B of 2.96. Over the past 12 months, VLVLY's P/B has been as high as 2.63 and as low as 1.78, with a median of 2.36.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. VLVLY has a P/S ratio of 0.84. This compares to its industry's average P/S of 0.9.
Finally, our model also underscores that VLVLY has a P/CF ratio of 7.25. 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 27.94. Over the past year, VLVLY's P/CF has been as high as 8.01 and as low as 4.98, with a median of 7.04.
These are only a few of the key metrics included in Volvo'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, VLVLY looks like an impressive value stock at the moment.