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Is Commerzbank (CRZBY) a Great Value Stock Right Now?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 Commerzbank (CRZBY - Free Report) . CRZBY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CRZBY has a P/S ratio of 0.78. This compares to its industry's average P/S of 1.68.

Finally, we should also recognize that CRZBY has a P/CF ratio of 3.42. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.39. Over the past 52 weeks, CRZBY's P/CF has been as high as 4.60 and as low as 2.60, with a median of 3.18.

Another great Banks - Foreign stock you could consider is UBS (UBS - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

UBS is trading at a forward earnings multiple of 7.74 at the moment, with a PEG ratio of 0.60. This compares to its industry's average P/E of 8.31 and average PEG ratio of 0.51.

Over the last 12 months, UBS's P/E has been as high as 10.29, as low as 6.90, with a median of 9.21, and its PEG ratio has been as high as 2.80, as low as 0.38, with a median of 0.92.

Furthermore, UBS holds a P/B ratio of 1.05 and its industry's price-to-book ratio is 1.34. UBS's P/B has been as high as 1.22, as low as 0.86, with a median of 1.01 over the past 12 months.

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


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