Yahoo Finance Are Investors Undervaluing Modine Manufacturing (MOD) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
Modine Manufacturing (MOD) is a stock many investors are watching right now. MOD is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 8.31, while its industry has an average P/E of 20.30. Over the past year, MOD's Forward P/E has been as high as 10.94 and as low as 4.54, with a median of 7.93.
Investors should also recognize that MOD has a P/B ratio of 2.26. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.33. Within the past 52 weeks, MOD's P/B has been as high as 2.76 and as low as 0.87, with a median of 1.77.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MOD has a P/S ratio of 0.51. This compares to its industry's average P/S of 0.74.
Finally, we should also recognize that MOD has a P/CF ratio of 9.09. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 35.92. Over the past year, MOD's P/CF has been as high as 11.08 and as low as 2.89, with a median of 5.14.
Volvo (VLVLY) may be another strong Automotive - Original Equipment stock to add to your shortlist. VLVLY is a # 2 (Buy) stock with a Value grade of A.
Shares of Volvo are currently trading at a forward earnings multiple of 11.30 and a PEG ratio of 0.72 compared to its industry's P/E and PEG ratios of 20.30 and 1.10, respectively.
VLVLY's price-to-earnings ratio has been as high as 12.33 and as low as 7.86, with a median of 9.91, while its PEG ratio has been as high as 1.07 and as low as 0.51, with a median of 0.66, all within the past year.
Volvo sports a P/B ratio of 2.38 as well; this compares to its industry's price-to-book ratio of 3.33. In the past 52 weeks, VLVLY's P/B has been as high as 2.58, as low as 1.78, with a median of 2.20.
These are only a few of the key metrics included in Modine Manufacturing and Volvo strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, MOD and VLVLY look 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
Modine Manufacturing Company (MOD) : Free Stock Analysis Report
AB Volvo (VLVLY) : Free Stock Analysis Report