Is Stellantis (STLA) a Great Value Stock Right Now?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is Stellantis (STLA). STLA is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 3.29. This compares to its industry's average Forward P/E of 9.56. Over the past year, STLA's Forward P/E has been as high as 5.84 and as low as 3.05, with a median of 4.94.

Another notable valuation metric for STLA is its P/B ratio of 0.44. 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 company's current P/B looks solid when compared to its industry's average P/B of 0.90. Over the past year, STLA's P/B has been as high as 1.46 and as low as 0.40, with a median of 0.68.

VOLKSWAGN-.1ADR (VWAGY) may be another strong Automotive - Foreign stock to add to your shortlist. VWAGY is a # 2 (Buy) stock with a Value grade of A.

VOLKSWAGN-.1ADR is trading at a forward earnings multiple of 5.65 at the moment, with a PEG ratio of 0.52. This compares to its industry's average P/E of 9.56 and average PEG ratio of 0.37.

Over the past year, VWAGY's P/E has been as high as 11.23, as low as 5.65, with a median of 8.97; its PEG ratio has been as high as 0.94, as low as 0.49, with a median of 0.14 during the same time period.

VOLKSWAGN-.1ADR sports a P/B ratio of 0.58 as well; this compares to its industry's price-to-book ratio of 0.90. In the past 52 weeks, VWAGY's P/B has been as high as 1.19, as low as 0.57, with a median of 0.93.

Value investors will likely look at more than just these metrics, but the above data helps show that Stellantis and VOLKSWAGN-.1ADR are likely undervalued currently. And when considering the strength of its earnings outlook, STLA and VWAGY sticks out as one of the market's strongest value stocks.

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
 
Stellantis N.V. (STLA) : Free Stock Analysis Report
 
Volkswagen AG Unsponsored ADR (VWAGY) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.