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Is Jefferies (JEF) 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.

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 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.

One company value investors might notice is Jefferies (JEF - Free Report) . JEF is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.61. This compares to its industry's average Forward P/E of 10.12. Over the last 12 months, JEF's Forward P/E has been as high as 19.54 and as low as 9.27, with a median of 10.24.

JEF is also sporting a PEG ratio of 1.01. 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. JEF's PEG compares to its industry's average PEG of 1.05. Over the past 52 weeks, JEF's PEG has been as high as 1.09 and as low as 1, with a median of 1.03.

We should also highlight that JEF has a P/B ratio of 0.81. 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 1.98. Over the past 12 months, JEF's P/B has been as high as 0.98 and as low as 0.75, with a median of 0.84.

These are only a few of the key metrics included in Jefferies'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, JEF looks like an impressive value stock at the moment.


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