Is Motorcar Parts of America (MPAA) a Great Value Stock Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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.
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.
One company value investors might notice is Motorcar Parts of America (MPAA). MPAA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 6.10, which compares to its industry's average of 11.30. Over the past 52 weeks, MPAA's Forward P/E has been as high as 11.96 and as low as 4.24, with a median of 6.07.
Finally, investors will want to recognize that MPAA has a P/CF ratio of 6.05. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 8.66. MPAA's P/CF has been as high as 17.07 and as low as 3.99, with a median of 8.77, all within the past year.
These are only a few of the key metrics included in Motorcar Parts of America's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, MPAA looks like an impressive value stock at the moment.
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Motorcar Parts of America, Inc. (MPAA) : Free Stock Analysis Report
