Should Value Investors Buy Suzuki Motor (SZKMY) Stock?

·2-min read

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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 value investors might notice is Suzuki Motor (SZKMY). SZKMY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.44, which compares to its industry's average of 10.48. Over the last 12 months, SZKMY's Forward P/E has been as high as 16.15 and as low as 7.82, with a median of 11.21.

Investors should also recognize that SZKMY has a P/B ratio of 0.88. 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 company's current P/B looks solid when compared to its industry's average P/B of 0.97. Over the past 12 months, SZKMY's P/B has been as high as 1.25 and as low as 0.81, with a median of 1.10.

These are only a few of the key metrics included in Suzuki Motor'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, SZKMY looks like an impressive value stock at the moment.

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