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Are Investors Undervaluing Gentherm (THRM) 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.
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 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.
Gentherm (THRM - Free Report) is a stock many investors are watching right now. THRM is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 14.33, which compares to its industry's average of 21.47. Over the past year, THRM's Forward P/E has been as high as 15.48 and as low as 8.71, with a median of 12.42.
Another notable valuation metric for THRM is its P/B ratio of 1.56. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. THRM's current P/B looks attractive when compared to its industry's average P/B of 3.62. Within the past 52 weeks, THRM's P/B has been as high as 2.49 and as low as 1.11, with a median of 1.62.
Visteon (VC - Free Report) may be another strong Automotive - Original Equipment stock to add to your shortlist. VC is a Zacks Rank of #1 (Strong Buy) stock with a Value grade of A.
Shares of Visteon are currently trading at a forward earnings multiple of 13.81 and a PEG ratio of 4.63 compared to its industry's P/E and PEG ratios of 21.47 and 1.38, respectively.
Over the past year, VC's P/E has been as high as 14.33, as low as 8.02, with a median of 10.30; its PEG ratio has been as high as 4.72, as low as 0.35, with a median of 0.40 during the same time period.
Additionally, Visteon has a P/B ratio of 2.28 while its industry's price-to-book ratio sits at 3.62. For VC, this valuation metric has been as high as 2.32, as low as 1.31, with a median of 1.87 over the past year.
These are just a handful of the figures considered in Gentherm and Visteon's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that THRM and VC is an impressive value stock right now.
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Are Investors Undervaluing Gentherm (THRM) 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.
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 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.
Gentherm (THRM - Free Report) is a stock many investors are watching right now. THRM is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 14.33, which compares to its industry's average of 21.47. Over the past year, THRM's Forward P/E has been as high as 15.48 and as low as 8.71, with a median of 12.42.
Another notable valuation metric for THRM is its P/B ratio of 1.56. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. THRM's current P/B looks attractive when compared to its industry's average P/B of 3.62. Within the past 52 weeks, THRM's P/B has been as high as 2.49 and as low as 1.11, with a median of 1.62.
Visteon (VC - Free Report) may be another strong Automotive - Original Equipment stock to add to your shortlist. VC is a Zacks Rank of #1 (Strong Buy) stock with a Value grade of A.
Shares of Visteon are currently trading at a forward earnings multiple of 13.81 and a PEG ratio of 4.63 compared to its industry's P/E and PEG ratios of 21.47 and 1.38, respectively.
Over the past year, VC's P/E has been as high as 14.33, as low as 8.02, with a median of 10.30; its PEG ratio has been as high as 4.72, as low as 0.35, with a median of 0.40 during the same time period.
Additionally, Visteon has a P/B ratio of 2.28 while its industry's price-to-book ratio sits at 3.62. For VC, this valuation metric has been as high as 2.32, as low as 1.31, with a median of 1.87 over the past year.
These are just a handful of the figures considered in Gentherm and Visteon's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that THRM and VC is an impressive value stock right now.