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

Nov 27, 2023Nov 27, 2023

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.

Timken (TKR)

The Timken Company is a global manufacturer of engineered bearings and industrial motion products and related services. The company serves a wide variety of end markets, including aerospace, automotive, construction, consumer, defense, energy, industrial equipment, health, heavy industry, machine tool, positioning control, power generation and rail markets.

TKR 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 11.6X for the current fiscal year compared to the Metal Products - Procurement and Fabrication industry's P/E of 14X. Additionally, TKR has a PEG Ratio of 1 and a Price/Cash Flow ratio of 10X. Value investors should also note TKR's Price/Sales ratio of 1.3X.

Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2023. The Zacks Consensus Estimate has increased $0.36 to $7.21 per share. TKR has an average earnings surprise of 15.7%.

TKR 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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Timken Company (The) (TKR) : Free Stock Analysis Report

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