Are You a Value Investor? This 1 Stock Could Be the Perfect Pick
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
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.
American Axle & Manufacturing (AXL)
Detroit-based American Axle & Manufacturing Holdings, Inc. is a leading supplier of driveline and drivetrain systems, modules and components for the light vehicle market. It manufactures Driveline and Metal Forming technologies to support electric, hybrid and internal combustion vehicles. The company operates with around 80 facilities in 18 countries. American Axle’s major customers include General Motors, Stellantis and Ford.
AXL sits at a Zacks Rank #3 (Hold), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Automotive - Original Equipment industry's P/E of 12.6X, shares of American Axle & Manufacturing are trading at a forward P/E of 19.5X. AXL also has a PEG Ratio of 2.4, a Price/Cash Flow ratio of 1.7X, and a Price/Sales ratio of 0.1X.
A company's earnings performance is important for value investors as well. For fiscal 2024, two analysts revised their earnings estimate higher in the last 60 days for AXL, while the Zacks Consensus Estimate has increased $0.03 to $0.35 per share. AXL also holds an average earnings surprise of 0.5%.
AXL should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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American Axle & Manufacturing Holdings, Inc. (AXL) : Free Stock Analysis Report
