Is SUMITOMO HEAVY (SOHVY) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is SUMITOMO HEAVY (SOHVY). SOHVY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 14.18, which compares to its industry's average of 25.29. Over the past 52 weeks, SOHVY's Forward P/E has been as high as 40.42 and as low as 9.47, with a median of 10.31.
SOHVY is also sporting a PEG ratio of 1.94. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SOHVY's industry currently sports an average PEG of 2.70. SOHVY's PEG has been as high as 2.02 and as low as 1.93, with a median of 1.94, all within the past year.
These are only a few of the key metrics included in SUMITOMO HEAVY's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, SOHVY looks like an impressive value stock at the moment.
Click to get this free report
SUMITOMO HEAVY (SOHVY): Free Stock Analysis Report
To read this article on Zacks.com click here.