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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Prudential (PRU - Free Report) is a stock many investors are watching right now. PRU is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 8.23 right now. For comparison, its industry sports an average P/E of 10.27. PRU's Forward P/E has been as high as 11.15 and as low as 7.47, with a median of 8.58, all within the past year.
We also note that PRU holds a PEG ratio of 0.91. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PRU's industry has an average PEG of 1.04 right now. PRU's PEG has been as high as 1.39 and as low as 0.83, with a median of 1.03, all within the past year.
Another notable valuation metric for PRU is its P/B ratio of 0.91. Investors use the P/B ratio to look at a stock's market value versus 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 1.51. Within the past 52 weeks, PRU's P/B has been as high as 0.99 and as low as 0.75, with a median of 0.86.
Finally, investors will want to recognize that PRU has a P/CF ratio of 5.81. 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 stock's P/CF looks attractive against its industry's average P/CF of 9.79. Over the past year, PRU's P/CF has been as high as 11.15 and as low as 4.95, with a median of 5.68.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Prudential is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PRU feels like a great value stock at the moment.
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Is Prudential (PRU) Stock Undervalued Right Now?
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Prudential (PRU - Free Report) is a stock many investors are watching right now. PRU is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 8.23 right now. For comparison, its industry sports an average P/E of 10.27. PRU's Forward P/E has been as high as 11.15 and as low as 7.47, with a median of 8.58, all within the past year.
We also note that PRU holds a PEG ratio of 0.91. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PRU's industry has an average PEG of 1.04 right now. PRU's PEG has been as high as 1.39 and as low as 0.83, with a median of 1.03, all within the past year.
Another notable valuation metric for PRU is its P/B ratio of 0.91. Investors use the P/B ratio to look at a stock's market value versus 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 1.51. Within the past 52 weeks, PRU's P/B has been as high as 0.99 and as low as 0.75, with a median of 0.86.
Finally, investors will want to recognize that PRU has a P/CF ratio of 5.81. 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 stock's P/CF looks attractive against its industry's average P/CF of 9.79. Over the past year, PRU's P/CF has been as high as 11.15 and as low as 4.95, with a median of 5.68.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Prudential is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PRU feels like a great value stock at the moment.