While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 stock to keep an eye on is Bayerische Motoren Werke AG Sponsored ADR (BMWYY). BMWYY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 5.92, while its industry has an average P/E of 7.17. BMWYY's Forward P/E has been as high as 6.63 and as low as 4.12, with a median of 4.89, all within the past year.
Another notable valuation metric for BMWYY is its P/B ratio of 0.56. The P/B ratio pits a stock's market value against 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 1.52. BMWYY's P/B has been as high as 0.56 and as low as 0.48, with a median of 0.52, over the past year.
These are only a few of the key metrics included in Bayerische Motoren Werke AG Sponsored ADR'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, BMWYY looks like an impressive value stock at the moment.
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