Should Value Investors Buy Regions Financial (RF) Stock?

RF

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.

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 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 to watch right now is Regions Financial (RF - Free Report) . RF is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 11.27, which compares to its industry's average of 12.85. Over the last 12 months, RF's Forward P/E has been as high as 14.47 and as low as 4.57, with a median of 11.24.

Investors will also notice that RF has a PEG ratio of 1.49. 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 2.09. Over the past 52 weeks, RF's PEG has been as high as 2.49 and as low as 0.66, with a median of 1.70.

Finally, investors will want to recognize that RF has a P/CF ratio of 10.97. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11. Within the past 12 months, RF's P/CF has been as high as 11.68 and as low as 3.55, with a median of 8.69.

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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