It doesn’t matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
Autoliv, Inc. (ALV)
Based in Stockholm, Autoliv is a holding company that operates through two principal subsidiaries — Autoliv AB and Autoliv ASP. Autoliv was born from the 1997 merger of Swedish firm Autoliv AB and U.S. firm Morton ASP. On Jun 29, 2018, Autoliv completed the spin-off of its Electronics business to Veoneer, Inc. Following the completion of the spin-off, the company has been focused on occupant safety products.
ALV is a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 10.4X for the current fiscal year compared to the Automotive – Original Equipment industry’s P/E of 11.3X. Additionally, ALV has a PEG Ratio of 0.3 and a Price/Cash Flow ratio of 12X. Value investors should also note ALV’s Price/Sales ratio of 0.9X.
Value investors don’t just pay attention to a company’s valuation ratios; positive earnings play a crucial role, too. One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2023. The Zacks Consensus Estimate has increased $0.00 to $7.20 per share. ALV has an average earnings surprise of 12.7%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding ALV to their portfolios.
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Autoliv, Inc. (ALV) : Free Stock Analysis Report