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Are Investors Undervaluing Banco Do Brasil (BDORY) 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 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.

One stock to keep an eye on is Banco Do Brasil (BDORY - Free Report) . BDORY 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 3.91, which compares to its industry's average of 7.15. Over the last 12 months, BDORY's Forward P/E has been as high as 4.27 and as low as 1.86, with a median of 3.53.

Investors will also notice that BDORY has a PEG ratio of 0.54. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BDORY's PEG compares to its industry's average PEG of 0.59. BDORY's PEG has been as high as 0.59 and as low as 0.10, with a median of 0.23, all within the past year.

Another valuation metric that we should highlight is BDORY's P/B ratio of 0.91. 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 solid versus its industry's average P/B of 1.46. Over the past 12 months, BDORY's P/B has been as high as 0.98 and as low as 0.54, with a median of 0.71.

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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BDORY has a P/S ratio of 0.69. This compares to its industry's average P/S of 1.29.

Finally, our model also underscores that BDORY has a P/CF ratio of 4.75. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.20. Over the past 52 weeks, BDORY's P/CF has been as high as 5.10 and as low as 2.80, with a median of 3.85.

These are only a few of the key metrics included in Banco Do Brasil'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, BDORY looks like an impressive value stock at the moment.


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