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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Bayerische Motoren Werke (BAMXF) is a stock many investors are watching right now. BAMXF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 6.79, while its industry has an average P/E of 8.03. Over the last 12 months, BAMXF's Forward P/E has been as high as 7.86 and as low as 6.21, with a median of 6.90.
We should also highlight that BAMXF has a P/B ratio of 0.67. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 0.92. Over the past year, BAMXF's P/B has been as high as 0.91 and as low as 0.63, with a median of 0.75.
Finally, our model also underscores that BAMXF has a P/CF ratio of 3.93. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. BAMXF's P/CF compares to its industry's average P/CF of 4.25. BAMXF's P/CF has been as high as 4.69 and as low as 3.37, with a median of 3.74, all within the past year.
These are just a handful of the figures considered in Bayerische Motoren Werke's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BAMXF is an impressive value stock right now.
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