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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.
Dana (DAN) is a stock many investors are watching right now. DAN 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 7.18 right now. For comparison, its industry sports an average P/E of 12.68. Over the past 52 weeks, DAN's Forward P/E has been as high as 18.77 and as low as 5.97, with a median of 10.06.
We also note that DAN holds a PEG ratio of 0.37. 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. DAN's industry currently sports an average PEG of 0.76. DAN's PEG has been as high as 0.37 and as low as 0.26, with a median of 0.30, all within the past year.
Another valuation metric that we should highlight is DAN's 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 stock's P/B looks solid versus its industry's average P/B of 1.66. Over the past year, DAN's P/B has been as high as 1.31 and as low as 0.88, with a median of 1.13.
If you're looking for another solid Automotive - Original Equipment value stock, take a look at Valeo (VLEEY). VLEEY is a # 2 (Buy) stock with a Value score of A.
Valeo is trading at a forward earnings multiple of 5.25 at the moment, with a PEG ratio of 0.11. This compares to its industry's average P/E of 12.68 and average PEG ratio of 0.76.
VLEEY's price-to-earnings ratio has been as high as 11.09 and as low as 4.86, with a median of 6.57, while its PEG ratio has been as high as 0.27 and as low as 0.09, with a median of 0.14, all within the past year.