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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 to watch right now is Autoliv (ALV). ALV is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 12.53, which compares to its industry’s average of 18.61. Over the past 52 weeks, ALV’s Forward P/E has been as high as 12.73 and as low as 7.83, with a median of 9.96.
Investors could also keep in mind Miller Industries (MLR), another Automotive – Original Equipment stock with a Zacks Rank of #2 (Buy) and Value grade of A.
Miller Industries also has a P/B ratio of 1.05 compared to its industry’s price-to-book ratio of 3.33. Over the past year, its P/B ratio has been as high as 2.23, as low as 1.05, with a median of 1.30.
These are only a few of the key metrics included in Autoliv and Miller Industries strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ALV and MLR look like an impressive value stock at the moment.
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Autoliv, Inc. (ALV) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).