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Is Barclays (BCS) Stock Undervalued 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.

Barclays (BCS - Free Report) is a stock many investors are watching right now. BCS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 4.43, which compares to its industry's average of 7.57. BCS's Forward P/E has been as high as 5.74 and as low as 3.79, with a median of 4.79, all within the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BCS has a P/S ratio of 0.97. This compares to its industry's average P/S of 1.26.

BNP Paribas (BNPQY - Free Report) may be another strong Banks - Foreign stock to add to your shortlist. BNPQY is a # 2 (Buy) stock with a Value grade of A.

Shares of BNP Paribas currently holds a Forward P/E ratio of 5.85, and its PEG ratio is 0.34. In comparison, its industry sports average P/E and PEG ratios of 7.57 and 0.73.

BNPQY's price-to-earnings ratio has been as high as 8.49 and as low as 5.25, with a median of 6.67, while its PEG ratio has been as high as 0.67 and as low as 0.31, with a median of 0.55, all within the past year.

Additionally, BNP Paribas has a P/B ratio of 0.61 while its industry's price-to-book ratio sits at 1.46. For BNPQY, this valuation metric has been as high as 0.69, as low as 0.40, with a median of 0.55 over the past year.

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


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