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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Aisin Seiki (ASEKY) is a stock many investors are watching right now. ASEKY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 9.61, which compares to its industry’s average of 20.67. ASEKY’s Forward P/E has been as high as 11.02 and as low as 5.81, with a median of 7.72, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. ASEKY has a P/S ratio of 0.28. This compares to its industry’s average P/S of 0.83.
Value investors will likely look at more than just these metrics, but the above data helps show that Aisin Seiki is likely undervalued currently. And when considering the strength of its earnings outlook, ASEKY sticks out at as one of the market’s strongest value stocks.
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Aisin Seiki Co. Ltd. Unsponsored ADR (ASEKY) : Free Stock Analysis Report