Should Value Investors Buy Subaru Corporation (FUJHY) Stock?

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.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 to watch right now is Subaru Corporation (FUJHY). FUJHY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 3.68 right now. For comparison, its industry sports an average P/E of 8.20. FUJHY's Forward P/E has been as high as 7.29 and as low as 3.64, with a median of 6.10, all within the past year.Investors will also notice that FUJHY has a PEG ratio of 0.15. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. FUJHY's industry currently sports an average PEG of 0.41. Over the last 12 months, FUJHY's PEG has been as high as 0.30 and as low as 0.15, with a median of 0.25.Another valuation metric that we should highlight is FUJHY's P/B ratio of 0.73. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 0.98. Within the past 52 weeks, FUJHY's P/B has been as high as 1.07 and as low as 0.67, with a median of 0.89.Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. FUJHY has a P/S ratio of 0.39. This compares to its industry's average P/S of 0.45.Finally, our model also underscores that FUJHY has a P/CF ratio of 3.02. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 4.24. Over the past 52 weeks, FUJHY's P/CF has been as high as 4.28 and as low as 2.77, with a median of 3.65.These figures are just a handful of the metrics value investors tend to look at, but they help show that Subaru Corporation is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FUJHY feels like a great value stock at the moment.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Subaru Corporation (FUJHY): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks