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Is BNP Paribas (BNPQY) a Great Value Stock Right Now?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

BNP Paribas (BNPQY - Free Report) is a stock many investors are watching right now. BNPQY 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 7.14, which compares to its industry's average of 8.12. Over the past 52 weeks, BNPQY's Forward P/E has been as high as 9.88 and as low as 5.75, with a median of 8.36.

Another notable valuation metric for BNPQY is its P/B ratio of 0.46. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.32. Over the past year, BNPQY's P/B has been as high as 0.65 and as low as 0.42, with a median of 0.56.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BNPQY has a P/S ratio of 1.16. This compares to its industry's average P/S of 1.64.

Finally, our model also underscores that BNPQY has a P/CF ratio of 4.20. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 12.22. Over the past year, BNPQY's P/CF has been as high as 5.84 and as low as 3.43, with a median of 4.60.

These are just a handful of the figures considered in BNP Paribas'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 BNPQY is an impressive value stock right now.


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