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Should Value Investors Buy Bayerische Motoren Werke AG Sponsored ADR (BMWYY) Stock?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

One company value investors might notice is Bayerische Motoren Werke AG Sponsored ADR (BMWYY). BMWYY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 6.09, while its industry has an average P/E of 7.77. Over the past year, BMWYY's Forward P/E has been as high as 6.19 and as low as 4.12, with a median of 4.70.

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Another valuation metric that we should highlight is BMWYY's P/B ratio of 0.62. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 0.90. BMWYY's P/B has been as high as 0.62 and as low as 0.48, with a median of 0.56, over the past year.

If you're looking for another solid Automotive - Foreign value stock, take a look at Mercedes-Benz Group AG (MBGAF). MBGAF is a # 1 (Strong Buy) stock with a Value score of A.

Mercedes-Benz Group AG is trading at a forward earnings multiple of 5.73 at the moment, with a PEG ratio of 3.60. This compares to its industry's average P/E of 7.77 and average PEG ratio of 1.88.

Over the last 12 months, MBGAF's P/E has been as high as 6.46, as low as 3.90, with a median of 5.06, and its PEG ratio has been as high as 3.83, as low as 0.14, with a median of 1.93.

Mercedes-Benz Group AG also has a P/B ratio of 1 compared to its industry's price-to-book ratio of 0.90. Over the past year, its P/B ratio has been as high as 1.07, as low as 0.65, with a median of 0.82.

These are just a handful of the figures considered in Bayerische Motoren Werke AG Sponsored ADR and Mercedes-Benz Group AG'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 BMWYY and MBGAF is an impressive value stock right now.

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Bayerische Motoren Werke AG Sponsored ADR (BMWYY) : Free Stock Analysis Report

Mercedes-Benz Group AG (MBGAF) : Free Stock Analysis Report

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Zacks Investment Research