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Why This 1 Value Stock Could Be a Great Addition to Your Portfolio

Zacks Equity Research
·2-min read

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

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.

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Johnson Controls (JCI)

Johnson Controls was originally incorporated in the state of Wisconsin in 1885 as Johnson Electric Service Company.In September 2016, Johnson Controls completed its merger with Tyco, a global fire protection and security company, and since then the company is headquartered in Ireland.

JCI is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 19X for the current fiscal year compared to the Security and Safety Services industry's P/E of 19X. Additionally, JCI has a PEG Ratio of 1.3 and a Price/Cash Flow ratio of 14.7X. Value investors should also note JCI's Price/Sales ratio of 1.6X.

Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2022. The Zacks Consensus Estimate has increased $0.02 to $3.00 per share. JCI has an average earnings surprise of 1.1%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding JCI to their portfolios.


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Johnson Controls International plc (JCI) : Free Stock Analysis Report
 
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Zacks Investment Research