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Is Grupo Financiero Galicia (GGAL) Stock Undervalued 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is Grupo Financiero Galicia (GGAL - Free Report) . GGAL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

GGAL is also sporting a PEG ratio of 0.59. 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. GGAL's industry has an average PEG of 1.52 right now. Over the past 52 weeks, GGAL's PEG has been as high as 0.67 and as low as 0.59, with a median of 0.62.

Another valuation metric that we should highlight is GGAL's P/B ratio of 0.68. The P/B ratio is used to compare a stock's market value with 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. Within the past 52 weeks, GGAL's P/B has been as high as 3.17 and as low as 0.36, with a median of 0.95.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. GGAL has a P/S ratio of 0.46. This compares to its industry's average P/S of 1.15.

These are just a handful of the figures considered in Grupo Financiero Galicia's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that GGAL is an impressive value stock right now.


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