Is Niu Technologies (NIU) a Great Value Stock Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Niu Technologies (NIU) is a stock many investors are watching right now. NIU is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 12.41, which compares to its industry's average of 22.43. Over the last 12 months, NIU's Forward P/E has been as high as 36.71 and as low as 5.74, with a median of 11.45.
Another valuation metric that we should highlight is NIU's P/B ratio of 1.52. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.74. NIU's P/B has been as high as 3.90 and as low as 1.07, with a median of 2.12, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. NIU has a P/S ratio of 0.62. This compares to its industry's average P/S of 0.79.
Finally, investors should note that NIU has a P/CF ratio of 39.09. 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 44.76. Over the past 52 weeks, NIU's P/CF has been as high as 63.11 and as low as 9.46, with a median of 14.97.
Value investors will likely look at more than just these metrics, but the above data helps show that Niu Technologies is likely undervalued currently. And when considering the strength of its earnings outlook, NIU sticks out at as one of the market's strongest value stocks.
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Niu Technologies (NIU) : Free Stock Analysis Report
