Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system’s “Value” category. Stocks with “A” grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Aptiv (APTV). APTV is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors should also note that APTV holds a PEG ratio of 0.59. 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. APTV’s industry has an average PEG of 1.09 right now. Over the past 52 weeks, APTV’s PEG has been as high as 1.99 and as low as 0.59, with a median of 0.94.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. APTV has a P/S ratio of 1.12. This compares to its industry’s average P/S of 1.58.
Value investors will likely look at more than just these metrics, but the above data helps show that Aptiv is likely undervalued currently. And when considering the strength of its earnings outlook, APTV sticks out at as one of the market’s strongest value stocks.
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Aptiv PLC (APTV) : Free Stock Analysis Report