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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Subaru Corporation (FUJHY) is a stock many investors are watching right now. FUJHY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 5.68 right now. For comparison, its industry sports an average P/E of 9.58. Over the past year, FUJHY's Forward P/E has been as high as 7.29 and as low as 4.96, with a median of 6.09.
Investors will also notice that FUJHY has a PEG ratio of 0.23. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. FUJHY's PEG compares to its industry's average PEG of 0.47. Within the past year, FUJHY's PEG has been as high as 0.30 and as low as 0.20, with a median of 0.25.
Another notable valuation metric for FUJHY is its P/B ratio of 0.77. 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 0.96. FUJHY's P/B has been as high as 1.07 and as low as 0.67, with a median of 0.89, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FUJHY has a P/S ratio of 0.42. This compares to its industry's average P/S of 0.61.
Finally, investors will want to recognize that FUJHY has a P/CF ratio of 3.16. 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. FUJHY's P/CF compares to its industry's average P/CF of 4.75. Over the past 52 weeks, FUJHY's P/CF has been as high as 4.28 and as low as 2.77, with a median of 3.67.