Here's Why Timken (TKR) is a Strong Value Stock
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
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
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.
Timken (TKR)
The Timken Company is a global manufacturer of bearings, friction management products, and mechanical power transmission components. The company serves a wide variety of end markets, including aerospace, automotive, construction, consumer, defense, energy, industrial equipment, health, heavy industry, machine tool, positioning control, power generation and rail markets.
TKR boasts a Value Style Score of B and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Shares of Timken are trading at a forward earnings multiple of 11.3X, as well as a PEG Ratio of 0.9, a Price/Cash Flow ratio of 8.5X, and a Price/Sales ratio of 1.1X.
A company's earnings performance is important for value investors as well. For fiscal 2022, two analysts revised their earnings estimate higher in the last 60 days for TKR, while the Zacks Consensus Estimate has increased $0.02 to $5.30 per share. TKR also holds an average earnings surprise of 5.1%.
Investors should take the time to consider TKR 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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