Yahoo Finance Is Panasonic (PCRFY) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Panasonic (PCRFY). PCRFY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.06, while its industry has an average P/E of 15. Over the past year, PCRFY's Forward P/E has been as high as 12.84 and as low as 9.25, with a median of 10.81.
Investors should also note that PCRFY holds a PEG ratio of 1.41. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PCRFY's industry currently sports an average PEG of 2.16. PCRFY's PEG has been as high as 1.64 and as low as 0.37, with a median of 1.28, all within the past year.
Another notable valuation metric for PCRFY is its P/B ratio of 0.75. 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. PCRFY's current P/B looks attractive when compared to its industry's average P/B of 1.72. Over the past 12 months, PCRFY's P/B has been as high as 0.99 and as low as 0.59, with a median of 0.73.
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. PCRFY has a P/S ratio of 0.34. This compares to its industry's average P/S of 0.82.
Finally, investors will want to recognize that PCRFY has a P/CF ratio of 4.28. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 5.70. PCRFY's P/CF has been as high as 5.02 and as low as 3.34, with a median of 3.97, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Panasonic is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PCRFY feels like a great value stock at the moment.
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Panasonic Corp. (PCRFY) : Free Stock Analysis Report
