Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

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

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

Meritor (MTOR)

Headquartered in Troy, MI, Meritor is a global automotive parts manufacturer and supplier. The company supplies a broad range of integrated systems, modules and components for commercial and specialty vehicles worldwide, with leading positions in most of its markets. Meritor serves a broad range of original equipment manufacturers (OEMs) worldwide, including commercial truck, trailer, military, bus and coach, other industrial OEMs and certain aftermarkets. As of September 30, 2021, Meritor had approximately 9,600 employees.

MTOR is a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and VGM Score of B. Shares are currently trading at a forward P/E of 9.9X for the current fiscal year compared to the Automotive - Original Equipment industry's P/E of 11.7X. Additionally, MTOR has a PEG Ratio of 0.6 and a Price/Cash Flow ratio of 8.5X. Value investors should also note MTOR's Price/Sales ratio of 0.6X.

Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2022. The Zacks Consensus Estimate has increased $0.05 to $3.65 per share. MTOR has an average earnings surprise of 19.6%.

MTOR 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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