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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 company to watch right now is Adient (ADNT). ADNT is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 9.90. This compares to its industry’s average Forward P/E of 20.48. Over the past year, ADNT’s Forward P/E has been as high as 17.37 and as low as 8.26, with a median of 12.91.
ADNT is also sporting a PEG ratio of 0.34. 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. ADNT’s PEG compares to its industry’s average PEG of 0.92. Within the past year, ADNT’s PEG has been as high as 0.36 and as low as 0.24, with a median of 0.29.
We should also highlight that ADNT has a P/B ratio of 1.41. 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. ADNT’s current P/B looks attractive when compared to its industry’s average P/B of 2.51. Within the past 52 weeks, ADNT’s P/B has been as high as 1.78 and as low as 1.15, with a median of 1.45.
Finally, investors will want to recognize that ADNT has a P/CF ratio of 7.73. 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. ADNT’s P/CF compares to its industry’s average P/CF of 29.23. Within the past 12 months, ADNT’s P/CF has been as high as 16.86 and as low as 7.33, with a median of 10.68.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Adient is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ADNT feels like a great value stock at the moment.
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Adient (ADNT) : Free Stock Analysis Report