Should value investors buy Suzuki Motor (SZKMY) shares?

Here at Zacks, we focus on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions, to find great stocks, but we always pay attention to the latest value, growth and momentum trends to highlight strong picks.

Looking at the history of these trends, arguably none is more popular than value investing. This strategy simply aims to identify companies that are undervalued by the broader market. Value investors use a variety of methods, including tried-and-tested valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Value investors will naturally be most interested in the “Value” category of the system. Stocks with an “A” grade for Value and high Zacks Ranks are among the best value stocks available at any given time.

One company that might catch the eye of value investors is Suzuki Motor (SZKMY). SZKMY currently has a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading at a P/E ratio of 8.44, compared to the industry average of 10.48. Over the past 12 months, SZKMY’s Forward P/E ratio has been as high as 16.15 and as low as 7.82, with a median of 11.21.

Investors should also be aware that SZKMY has a P/B ratio of 0.88. P/B is a method of comparing the market value of a stock to its book value, which is defined as total assets minus total liabilities. This company’s current P/B looks solid compared to the industry average of 0.97. Over the past 12 months, SZKMY’s P/B has ranged from 1.25 to 0.81, with a median of 1.10.

These are just a few of the key metrics that give Suzuki Motors a strong value rating, but they show that the stock is likely undervalued right now. When you factor in the strong earnings outlook, SZKMY looks like an impressive value stock right now.

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