Here's Why Lear (LEA) is a Strong Value Stock
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
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
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 12.3X for the current fiscal year compared to the Automotive - Original Equipment industry's P/E of 15.2X. Additionally, LEA has a PEG Ratio of 0.3 and a Price/Cash Flow ratio of 7.4X. Value investors should also note LEA's Price/Sales ratio of 0.4X.
Many value investors pay close attention to a company's earnings as well. For LEA, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.19 to $11.15 per share for 2023. Per share LEA boasts an average earnings surprise of 15.5%.
Investors should take the time to consider LEA for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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Lear Corporation (LEA) : Free Stock Analysis Report
