Is Panasonic Corp. (PCRFY) 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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Panasonic Corp. (PCRFY). PCRFY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 11.20 right now. For comparison, its industry sports an average P/E of 16.47. Over the past 52 weeks, PCRFY's Forward P/E has been as high as 20.31 and as low as 11.14, with a median of 14.15.
PCRFY is also sporting a PEG ratio of 0.45. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PCRFY's PEG compares to its industry's average PEG of 1.10. Over the last 12 months, PCRFY's PEG has been as high as 7.06 and as low as 0.44, with a median of 1.45.
Investors should also recognize that PCRFY has a P/B ratio of 1.09. 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 1.72. Over the past year, PCRFY's P/B has been as high as 1.49 and as low as 0.93, with a median of 1.19.
Finally, investors will want to recognize that PCRFY has a P/CF ratio of 5.04. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 7.47. Within the past 12 months, PCRFY's P/CF has been as high as 7 and as low as 4.96, with a median of 5.89.
Value investors will likely look at more than just these metrics, but the above data helps show that Panasonic Corp. Is likely undervalued currently. And when considering the strength of its earnings outlook, PCRFY sticks out at as one of the market's strongest value stocks.
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