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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
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 a P/E ratio of 7.42, which compares to its industry's average of 9.36. Over the last 12 months, PRU's Forward P/E has been as high as 11.15 and as low as 7.42, with a median of 8.40.
We also note that PRU holds a PEG ratio of 0.82. 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 PEG compares to its industry's average PEG of 0.95. PRU's PEG has been as high as 1.39 and as low as 0.82, with a median of 1.01, all within the past year.
Another valuation metric that we should highlight is PRU's P/B ratio of 0.82. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.38. Over the past 12 months, PRU's P/B has been as high as 0.99 and as low as 0.75, with a median of 0.85.
Finally, investors will want to recognize that PRU has a P/CF ratio of 5.30. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.93. Over the past 52 weeks, PRU's P/CF has been as high as 11.15 and as low as 4.95, with a median of 5.62.
These are only a few of the key metrics included in Prudential'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, PRU looks like an impressive value stock at the moment.
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Is Prudential (PRU) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
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 a P/E ratio of 7.42, which compares to its industry's average of 9.36. Over the last 12 months, PRU's Forward P/E has been as high as 11.15 and as low as 7.42, with a median of 8.40.
We also note that PRU holds a PEG ratio of 0.82. 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 PEG compares to its industry's average PEG of 0.95. PRU's PEG has been as high as 1.39 and as low as 0.82, with a median of 1.01, all within the past year.
Another valuation metric that we should highlight is PRU's P/B ratio of 0.82. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.38. Over the past 12 months, PRU's P/B has been as high as 0.99 and as low as 0.75, with a median of 0.85.
Finally, investors will want to recognize that PRU has a P/CF ratio of 5.30. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.93. Over the past 52 weeks, PRU's P/CF has been as high as 11.15 and as low as 4.95, with a median of 5.62.
These are only a few of the key metrics included in Prudential'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, PRU looks like an impressive value stock at the moment.