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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Bayerische Motoren Werke (BAMXF). BAMXF 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 5.49, while its industry has an average P/E of 8.75. Over the past 52 weeks, BAMXF's Forward P/E has been as high as 6.57 and as low as 4.26, with a median of 5.37.
We should also highlight that BAMXF has a P/B ratio of 0.43. 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. This stock's P/B looks solid versus its industry's average P/B of 0.93. Over the past 12 months, BAMXF's P/B has been as high as 0.72 and as low as 0.41, with a median of 0.55.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BAMXF has a P/S ratio of 0.28. This compares to its industry's average P/S of 0.45.
Finally, investors should note that BAMXF has a P/CF ratio of 2.54. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. BAMXF's P/CF compares to its industry's average P/CF of 4.53. Over the past year, BAMXF's P/CF has been as high as 3.68 and as low as 2.31, with a median of 2.82.
Another great Automotive - Foreign stock you could consider is Yamaha Motor Co. (YMHAY), which is a # 2 (Buy) stock with a Value Score of A.
Yamaha Motor Co. sports a P/B ratio of 0.93 as well; this compares to its industry's price-to-book ratio of 0.93. In the past 52 weeks, YMHAY's P/B has been as high as 1.28, as low as 0.93, with a median of 1.11.