雅虎香港財經 Should Value Investors Buy Subaru Corporation (FUJHY) Stock?
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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One stock to keep an eye on is Subaru Corporation (FUJHY). FUJHY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 5.71, which compares to its industry's average of 7.72. FUJHY's Forward P/E has been as high as 7.43 and as low as 5.29, with a median of 6.50, all within the past year.
We also note that FUJHY holds a PEG ratio of 0.23. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. FUJHY's industry currently sports an average PEG of 0.43. Over the past 52 weeks, FUJHY's PEG has been as high as 0.33 and as low as 0.21, with a median of 0.27.
Another notable valuation metric for FUJHY is its P/B ratio of 0.79. Investors use the P/B ratio to look at a stock's market value versus 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 0.86. Within the past 52 weeks, FUJHY's P/B has been as high as 1.07 and as low as 0.71, with a median of 0.91.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. FUJHY has a P/S ratio of 0.42. This compares to its industry's average P/S of 0.75.
Finally, we should also recognize that FUJHY has a P/CF ratio of 3.24. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 4.48. Over the past year, FUJHY's P/CF has been as high as 4.44 and as low as 2.91, with a median of 3.80.
Value investors will likely look at more than just these metrics, but the above data helps show that Subaru Corporation is likely undervalued currently. And when considering the strength of its earnings outlook, FUJHY sticks out at 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
Subaru Corporation (FUJHY) : Free Stock Analysis Report
