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Should Value Investors Buy BNP Paribas (BNPQY) Stock?

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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.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 company value investors might notice is BNP Paribas (BNPQY - Free Report) . BNPQY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Investors should also note that BNPQY holds a PEG ratio of 0.56. 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. BNPQY's PEG compares to its industry's average PEG of 0.74. Over the past 52 weeks, BNPQY's PEG has been as high as 0.84 and as low as 0.46, with a median of 0.60.

Investors should also recognize that BNPQY has a P/B ratio of 0.54. The P/B ratio pits a stock's market value against 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 1.40. Over the past 12 months, BNPQY's P/B has been as high as 0.65 and as low as 0.40, with a median of 0.48.

Finally, we should also recognize that BNPQY has a P/CF ratio of 3.87. 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. BNPQY's current P/CF looks attractive when compared to its industry's average P/CF of 12.31. Over the past year, BNPQY's P/CF has been as high as 5.37 and as low as 2.83, with a median of 4.16.

These are only a few of the key metrics included in BNP Paribas's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BNPQY looks like an impressive value stock at the moment.


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