Why Lear (LEA) is a Top Value Stock for the Long-Term
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
Lear (LEA)
Southfield, MI-based Lear Corporation is a Tier 1 supplier to the global automotive industry. The company supplies automotive seating and electrical systems (E-Systems). It caters to several major automakers in the world. The primary customers of the company are automotive original equipment manufacturers (OEMs). Lear’s products are designed, engineered and manufactured by a team of around 168,700 employees, located in 37 countries.
LEA is a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 11.1X for the current fiscal year compared to the Automotive - Original Equipment industry's P/E of 13.9X. Additionally, LEA has a PEG Ratio of 0.4 and a Price/Cash Flow ratio of 7.2X. Value investors should also note LEA's Price/Sales ratio of 0.3X.
A company's earnings performance is important for value investors as well. For fiscal 2023, five analysts revised their earnings estimate higher in the last 60 days for LEA, while the Zacks Consensus Estimate has increased $0.19 to $12.02 per share. LEA also holds an average earnings surprise of 9.1%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding LEA to their portfolios.
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Lear Corporation (LEA) : Free Stock Analysis Report
