Is NN (NNBR) Stock Undervalued Right Now?

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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is NN (NNBR). NNBR is currently sporting a Zacks Rank #2 (Buy) and an A for Value.

Investors will also notice that NNBR has a PEG ratio of 0.60. 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. NNBR's industry has an average PEG of 0.76 right now. NNBR's PEG has been as high as 17.62 and as low as -7.82, with a median of 1.25, all within the past year.

We should also highlight that NNBR has a P/B ratio of 1.9. The P/B is a method of comparing a stock's market value to 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 3.15. Within the past 52 weeks, NNBR's P/B has been as high as 2.33 and as low as 1.22, with a median of 1.79.

These are only a few of the key metrics included in NN's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, NNBR looks like an impressive value stock at the moment.

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

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