Back to top

Image: Bigstock

Is ING Groep (ING) Stock Undervalued Right Now?

Read MoreHide Full Article

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is ING Groep (ING - Free Report) . ING is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 7.35. This compares to its industry's average Forward P/E of 9.45. Over the past year, ING's Forward P/E has been as high as 9.54 and as low as 3.35, with a median of 7.82.

Investors should also note that ING holds a PEG ratio of 1.57. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ING's PEG compares to its industry's average PEG of 1.73. ING's PEG has been as high as 7.18 and as low as 0.71, with a median of 1.75, all within the past year.

Investors should also recognize that ING has a P/B ratio of 0.51. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 0.97. ING's P/B has been as high as 0.83 and as low as 0.32, with a median of 0.55, over the past year.

Finally, our model also underscores that ING has a P/CF ratio of 6.36. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 13.73. Over the past year, ING's P/CF has been as high as 7.62 and as low as 2.88, with a median of 5.97.

Value investors will likely look at more than just these metrics, but the above data helps show that ING Groep is likely undervalued currently. And when considering the strength of its earnings outlook, ING sticks out at as one of the market's strongest value stocks.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


ING Group, N.V. (ING) - free report >>

Published in