Are You a Value Investor? This 1 Stock Could Be the Perfect Pick
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.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
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 engineered bearings and industrial motion products and related services. 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 is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 12.9X for the current fiscal year compared to the Metal Products - Procurement and Fabrication industry's P/E of 13.4X. Additionally, TKR has a PEG Ratio of 1.1 and a Price/Cash Flow ratio of 11.2X. Value investors should also note TKR's Price/Sales ratio of 1.5X.
Many value investors pay close attention to a company's earnings as well. For TKR, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.09 to $7.26 per share for 2023. Per share TKR boasts an average earnings surprise of 15.7%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding TKR to their portfolios.
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Timken Company (The) (TKR) : Free Stock Analysis Report
