Is Fuji Heavy Industries (FUJHY) Stock Undervalued Right Now?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is Fuji Heavy Industries (FUJHY). FUJHY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 7.15 right now. For comparison, its industry sports an average P/E of 9.62. Over the past 52 weeks, FUJHY's Forward P/E has been as high as 10.57 and as low as 6.61, with a median of 8.48.

We should also highlight that FUJHY has a P/B ratio of 0.81. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 0.94. Within the past 52 weeks, FUJHY's P/B has been as high as 0.95 and as low as 0.64, with a median of 0.83.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FUJHY has a P/S ratio of 0.54. This compares to its industry's average P/S of 0.61.

These are only a few of the key metrics included in Fuji Heavy Industries'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, FUJHY looks like an impressive value stock at the moment.

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