Why Lear (LEA) is a Top Value Stock for the Long-Term
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
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 boasts a Value Style Score of A and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of Lear are trading at a forward earnings multiple of 8.4X, as well as a PEG Ratio of 0.3, a Price/Cash Flow ratio of 7.2X, and a Price/Sales ratio of 0.3X.
Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2023. The Zacks Consensus Estimate has increased $0.01 to $12.03 per share. LEA has an average earnings surprise of 9.1%.
LEA 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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Lear Corporation (LEA) : Free Stock Analysis Report
