Volvo Cars is gearing up to go public. The Volvo IPO promises to expand the selection for investors seeking exposure to EV stocks. The Swedish luxury carmaker plans to list its stock on the Nasdaq Stockholm stock exchange. Should you buy Volvo IPO stock Where can U.S. investors buy Volvo stock
The Volvo IPO plan comes as its subsidiary Polestar also gears up to go public in a SPAC merger. Investors hope this time that Volvo will actually go public. The company cancelled its IPO plan in 2018 due to trade tensions between the U.S. and China. That was also a rough period for auto stocks.
If you missed the Tesla, NIO, or Xpeng IPO, Volvo stock can give you good exposure to the booming electric vehicle sector. Volvo is profitable and the IPO is going to give the company more money to invest and expand its EV business quickly.
Through Volvo stock, you can also get exposure to Polestar. Volvo will own 50 percent of Polestar stock after its SPAC IPO. Polestar is an electric car company that aims to sell 29,000 vehicles in 2021. Volvo is a joint owner in the business alongside Geely and other investors.
Since the Volvo IPO is taking place in Sweden, U.S. investors can buy Volvo stock through brokers that offer access to foreign stocks. These brokers include eToro, Interactive Brokers, Schwab, Fidelity, and TD Ameritrade.
Stash Banking services provided by Stride Bank, N.A., Member FDIC. The Stash Stock-Back Debit Mastercard is issued by Stride Bank pursuant to license from Mastercard International. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated. Any earned stock rewards will be held in your Stash Invest account. Investment products and services provided by Stash Investments LLC, not Stride Bank, and are Not FDIC Insured, Not Bank Guaranteed, and May Lose Value. In order for a user to be eligible for a Stash banking account, they must also have opened a taxable brokerage account on Stash.
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is Volvo (VLVLY). VLVLY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 12.22 right now. For comparison, its industry sports an average P/E of 22.44. Over the last 12 months, VLVLY's Forward P/E has been as high as 12.33 and as low as 7.86, with a median of 9.78.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Volvo is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, VLVLY feels like a great value stock at the moment.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the \"Value\" category. Stocks with high Zacks Ranks and \"A\" grades for Value will be some of the highest-quality value stocks on the market today.
Volvo (VLVLY) is a stock many investors are watching right now. VLVLY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 11.86 right now. For comparison, its industry sports an average P/E of 21.90. VLVLY's Forward P/E has been as high as 13.09 and as low as 7.86, with a median of 9.78, all within the past year.
Investors will also notice that VLVLY has a PEG ratio of 0.68. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. VLVLY's PEG compares to its industry's average PEG of 1.29. Over the last 12 months, VLVLY's PEG has been as high as 1.07 and as low as 0.51, with a median of 0.65.
These are just a handful of the figures considered in Volvo and Wabash National's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that VLVLY and WNC is an impressive value stock right now.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
For AB Volvo, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>>.
Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings for its entire universe of more than 4000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a 'Strong Buy' rating and the next 15% get a 'Buy' rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.
Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.
As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.
Zacks' proprietary data indicates that AB Volvo is currently rated as a Zacks Rank 2 and we are expecting an above average return from the VLVLY shares relative to the market in the next few months. In addition, AB Volvo has a VGM Score of A (this is a weighted average of the individual Style Scores which allow you to focus on the stocks that best fit your personal trading style). Valuation metrics show that AB Volvo may be undervalued. Its Value Score of A indicates it would be a good pick for value investors. The financial health and growth prospects of VLVLY, demonstrate its potential to outperform the market. It currently has a Growth Score of B. Recent price changes and earnings estimate revisions indicate this stock lacks momentum and would be a lackluster choice for momentum investors.
The ever popular one-page Snapshot reports are generated for virtually every single Zacks Ranked stock. It's packed with all of the company's key stats and salient decision making information. Including the Zacks Rank, Zacks Industry Rank, Style Scores, the Price, Consensus & Surprise chart, graphical estimate analysis and how a stocks stacks up to its peers.
The detailed multi-page Analyst report does an even deeper dive on the company's vital statistics. In addition to all of the proprietary analysis in the Snapshot, the report also visually displays the four components of the Zacks Rank (Agreement, Magnitude, Upside and Surprise); provides a comprehensive overview of the company business drivers, complete with earnings and sales charts; a recap of their last earnings report; and a bulleted list of reasons to buy or sell the stock. It also includes an industry comparison table to see how your stock compares to its expanded industry, and the S&P 500. 59ce067264