We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Franklin Resources (BEN) Stock Undervalued Right Now?
Read MoreHide Full Article
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Franklin Resources (BEN - Free Report) . BEN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.06, which compares to its industry's average of 12.30. Over the past 52 weeks, BEN's Forward P/E has been as high as 12.82 and as low as 6.66, with a median of 10.10.
We should also highlight that BEN has a P/B ratio of 1.03. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.96. Over the past year, BEN's P/B has been as high as 1.37 and as low as 0.70, with a median of 0.98.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BEN has a P/S ratio of 1.73. This compares to its industry's average P/S of 2.18.
Finally, we should also recognize that BEN has a P/CF ratio of 9.26. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 36.66. BEN's P/CF has been as high as 10.52 and as low as 5.21, with a median of 8.58, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Franklin Resources is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BEN feels like a great value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Franklin Resources (BEN) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Franklin Resources (BEN - Free Report) . BEN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.06, which compares to its industry's average of 12.30. Over the past 52 weeks, BEN's Forward P/E has been as high as 12.82 and as low as 6.66, with a median of 10.10.
We should also highlight that BEN has a P/B ratio of 1.03. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.96. Over the past year, BEN's P/B has been as high as 1.37 and as low as 0.70, with a median of 0.98.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BEN has a P/S ratio of 1.73. This compares to its industry's average P/S of 2.18.
Finally, we should also recognize that BEN has a P/CF ratio of 9.26. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 36.66. BEN's P/CF has been as high as 10.52 and as low as 5.21, with a median of 8.58, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Franklin Resources is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BEN feels like a great value stock at the moment.