Yahoo Finance Here's Why Autoliv, Inc. (ALV) is a Strong Value Stock
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
Autoliv, Inc. (ALV)
Based in Stockholm, Autoliv is a holding company that operates through two principal subsidiaries — Autoliv AB and Autoliv ASP. Autoliv was born from the 1997 merger of Swedish firm Autoliv AB and U.S. firm Morton ASP. On Jun 29, 2018, Autoliv completed the spin-off of its Electronics business to Veoneer, Inc. Following the completion of the spin-off, the company has been focused on occupant safety products.
ALV is a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 10.9X for the current fiscal year compared to the Automotive - Original Equipment industry's P/E of 12.1X. Additionally, ALV has a PEG Ratio of 0.6 and a Price/Cash Flow ratio of 8.4X. Value investors should also note ALV's Price/Sales ratio of 0.8X.
Many value investors pay close attention to a company's earnings as well. For ALV, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.14 to $9.82 per share for 2024. Per share ALV boasts an average earnings surprise of 14.1%.
ALV should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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Autoliv, Inc. (ALV) : Free Stock Analysis Report
