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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the “Value” category. Stocks with high Zacks Ranks and “A” grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Aptiv (APTV). APTV is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
Investors should also note that APTV holds a PEG ratio of 0.54. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company’s expected EPS growth rate. APTV’s PEG compares to its industry’s average PEG of 1.09. Over the past 52 weeks, APTV’s PEG has been as high as 1.99 and as low as 0.54, with a median of 0.92.
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 1.02. This compares to its industry’s average P/S of 1.63.
These are only a few of the key metrics included in Aptiv’s strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, APTV looks like an impressive value stock at the moment.
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Aptiv PLC (APTV) : Free Stock Analysis Report