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Is Regions Financial (RF) a Great Value Stock Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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.

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 to watch right now is Regions Financial (RF - Free Report) . RF is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 10.79, while its industry has an average P/E of 11.66. Over the past year, RF's Forward P/E has been as high as 17.65 and as low as 9.96, with a median of 13.14.

Investors will also notice that RF has a PEG ratio of 0.87. 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. RF's PEG compares to its industry's average PEG of 0.90. Within the past year, RF's PEG has been as high as 1.47 and as low as 0.80, with a median of 0.99.

Investors should also recognize that RF has a P/B ratio of 1.34. 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 attractive against its industry's average P/B of 1.70. RF's P/B has been as high as 1.50 and as low as 1.12, with a median of 1.39, over 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. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. RF has a P/S ratio of 2.75. This compares to its industry's average P/S of 3.04.

Finally, we should also recognize that RF has a P/CF ratio of 8.59. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 13.79. RF's P/CF has been as high as 13.11 and as low as 7.85, with a median of 11.39, all within the past year.

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


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