Are Investors Undervaluing Aisin Seiki (ASEKY) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Aisin Seiki (ASEKY). ASEKY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.11 right now. For comparison, its industry sports an average P/E of 19.07. Over the past 52 weeks, ASEKY's Forward P/E has been as high as 11.02 and as low as 6.43, with a median of 7.81.
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. ASEKY has a P/S ratio of 0.29. This compares to its industry's average P/S of 0.84.
If you're looking for another solid Automotive - Original Equipment value stock, take a look at Oshkosh (OSK). OSK is a # 2 (Buy) stock with a Value score of A.
Shares of Oshkosh are currently trading at a forward earnings multiple of 10.78 and a PEG ratio of 0.22 compared to its industry's P/E and PEG ratios of 19.07 and 1.16, respectively.
Over the last 12 months, OSK's P/E has been as high as 18.27, as low as 9.52, with a median of 11.69, and its PEG ratio has been as high as 0.90, as low as 0.21, with a median of 0.33.
Additionally, Oshkosh has a P/B ratio of 2.04 while its industry's price-to-book ratio sits at 2.46. For OSK, this valuation metric has been as high as 2.18, as low as 1.47, with a median of 1.77 over the past year.
These are only a few of the key metrics included in Aisin Seiki and Oshkosh strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ASEKY and OSK look like an impressive value stock at the moment.
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Aisin Seiki Co. Ltd. Unsponsored ADR (ASEKY) : Free Stock Analysis Report
Oshkosh Corporation (OSK) : Free Stock Analysis Report
