Yahoo Finance Here's Why Gentex (GNTX) is a Strong Value Stock
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
Gentex (GNTX)
Zeeland, MI-based Gentex Corporation is engaged in supplying automatic-dimming rear-view mirrors and electronics to the automotive industry; fire protection products to the fire protection market and dimmable aircraft windows to the aviation market.
GNTX is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 16.2X for the current fiscal year compared to the Automotive - Original Equipment industry's P/E of 12.2X. Additionally, GNTX has a PEG Ratio of 0.7 and a Price/Cash Flow ratio of 15.7X. Value investors should also note GNTX's Price/Sales ratio of 3.5X.
Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.01 to $2.17 per share. GNTX has an average earnings surprise of 12.2%.
GNTX should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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Gentex Corporation (GNTX) : Free Stock Analysis Report
