Yahoo Finance Are Investors Undervaluing Denso (DNZOY) Right Now?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Denso (DNZOY) is a stock many investors are watching right now. DNZOY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 12.44. This compares to its industry's average Forward P/E of 15.50. Over the past year, DNZOY's Forward P/E has been as high as 17.57 and as low as 11.42, with a median of 13.86.
Another valuation metric that we should highlight is DNZOY's P/B ratio of 1.43. 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 stock's P/B looks attractive against its industry's average P/B of 1.82. Within the past 52 weeks, DNZOY's P/B has been as high as 1.68 and as low as 1.18, with a median of 1.38.
Finally, we should also recognize that DNZOY has a P/CF ratio of 9.45. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 21.07. Over the past 52 weeks, DNZOY's P/CF has been as high as 11.20 and as low as 8.50, with a median of 10.25.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Denso is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DNZOY feels like a great value stock at the moment.
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Denso Corp. (DNZOY) : Free Stock Analysis Report
