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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the “Value” category. When paired with a high Zacks Rank, “A” grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Continental (CTTAY). CTTAY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 17.40, while its industry has an average P/E of 20.17. CTTAY’s Forward P/E has been as high as 17.40 and as low as 5.97, with a median of 8.34, all within the past year.
CTTAY is also sporting a PEG ratio of 0.41. 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. CTTAY’s industry has an average PEG of 1.18 right now. Over the past 52 weeks, CTTAY’s PEG has been as high as 0.41 and as low as 0.14, with a median of 0.19.
Investors should also recognize that CTTAY has a P/B ratio of 0.80. Investors use the P/B ratio to look at a stock’s market value versus 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 1.96. Within the past 52 weeks, CTTAY’s P/B has been as high as 1.49 and as low as 0.57, with a median of 0.89.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Continental is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CTTAY feels like a great value stock at the moment.
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Continental AG (CTTAY) : Free Stock Analysis Report