Is Commercial Vehicle Group (CVGI) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Commercial Vehicle Group (CVGI) is a stock many investors are watching right now. CVGI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 12.38, while its industry has an average P/E of 21.85. Over the past 52 weeks, CVGI's Forward P/E has been as high as 12.38 and as low as 3.72, with a median of 6.60.
Investors will also notice that CVGI has a PEG ratio of 0.59. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CVGI's industry currently sports an average PEG of 1.27. CVGI's PEG has been as high as 0.59 and as low as 0.18, with a median of 0.32, all within the past year.
Investors should also recognize that CVGI has a P/B ratio of 2.54. 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 2.60. Over the past year, CVGI's P/B has been as high as 2.54 and as low as 1, with a median of 1.70.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CVGI has a P/S ratio of 0.34. This compares to its industry's average P/S of 0.78.
Another great Automotive - Original Equipment stock you could consider is Wabash National (WNC), which is a # 1 (Strong Buy) stock with a Value Score of A.
Wabash National sports a P/B ratio of 2.61 as well; this compares to its industry's price-to-book ratio of 2.60. In the past 52 weeks, WNC's P/B has been as high as 3.61, as low as 1.84, with a median of 2.60.
These are just a handful of the figures considered in Commercial Vehicle Group and Wabash National's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CVGI and WNC is an impressive value stock right now.
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Commercial Vehicle Group, Inc. (CVGI) : Free Stock Analysis Report
Wabash National Corporation (WNC) : Free Stock Analysis Report
