- Oops!Something went wrong.Please try again later.
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.
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.
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 company to watch right now is Toyota Motor Corporation (TM). TM is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.13, which compares to its industry's average of 12.57. Over the past 52 weeks, TM's Forward P/E has been as high as 14.94 and as low as 9.22, with a median of 11.06.
Investors should also note that TM holds a PEG ratio of 0.67. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TM's industry currently sports an average PEG of 0.73. Over the last 12 months, TM's PEG has been as high as 4.64 and as low as 0.65, with a median of 1.38.
Another notable valuation metric for TM is its P/B ratio of 1.10. The P/B ratio pits a stock's market value against 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 1.18. Over the past 12 months, TM's P/B has been as high as 1.13 and as low as 0.84, with a median of 0.96.
These are only a few of the key metrics included in Toyota Motor Corporation'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, TM looks like an impressive value stock at the moment.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Toyota Motor Corporation (TM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research