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Lear (LEA) is a Top-Ranked Value Stock: Should You Buy?

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

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Lear (LEA)

Southfield, MI-based Lear Corporation is a Tier 1 supplier to the global automotive industry. The company supplies automotive seating and electrical systems (E-Systems). It caters to several major automakers in the world. The primary customers of the company are automotive original equipment manufacturers (OEMs). Lear’s products are designed, engineered and manufactured by a team of around 160,100 employees, located in 38 countries.

LEA is a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 14.7X for the current fiscal year compared to the Automotive - Original Equipment industry's P/E of 11.3X. Additionally, LEA has a PEG Ratio of 0.4 and a Price/Cash Flow ratio of 7.2X. Value investors should also note LEA's Price/Sales ratio of 0.4X.

Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2022. The Zacks Consensus Estimate has increased $0.33 to $8.61 per share. LEA has an average earnings surprise of 6.5%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding LEA to their portfolios.


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