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Why This 1 Value Stock Could Be a Great Addition to Your Portfolio

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

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

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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American Axle & Manufacturing (AXL)

Detroit-based American Axle & Manufacturing Holdings, Inc. is a leading supplier of driveline and drivetrain systems, modules and components for the light vehicle market. It manufactures Driveline and Metal Forming technologies to support electric, hybrid and internal combustion vehicles. The company operates with around 80 facilities in 18 countries. American Axle’s major customers include General Motors, Stellantis and Ford.

AXL boasts a Value Style Score of A and VGM Score of A, and holds a Zacks Rank #2 (Buy) rating. Shares of American Axle & Manufacturing are trading at a forward earnings multiple of 20.2X, as well as a PEG Ratio of 2.5, a Price/Cash Flow ratio of 1.9X, and a Price/Sales ratio of 0.1X.

Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.06 to $0.38 per share. AXL has an average earnings surprise of 404.7%.

AXL should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.

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American Axle & Manufacturing Holdings, Inc. (AXL) : Free Stock Analysis Report

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