Should Value Investors Buy Visteon (VC) 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 Visteon (VC). VC is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 13.68, while its industry has an average P/E of 21.39. Over the past 52 weeks, VC's Forward P/E has been as high as 14.33 and as low as 8.02, with a median of 10.32.

Another notable valuation metric for VC is its P/B ratio of 2.27. 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 stock's P/B looks solid versus its industry's average P/B of 3.60. Over the past year, VC's P/B has been as high as 2.34 and as low as 1.31, with a median of 1.87.

Value investors will likely look at more than just these metrics, but the above data helps show that Visteon is likely undervalued currently. And when considering the strength of its earnings outlook, VC sticks out as one of the market's strongest value stocks.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research