Are These Finance Stocks Undervalued Right Now?

SNV UBAB

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 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 stock to keep an eye on is Synovus Financial (SNV - Free Report) . SNV 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 10.52, which compares to its industry's average of 12.91. Over the past 52 weeks, SNV's Forward P/E has been as high as 13.59 and as low as 9.26, with a median of 11.34.

Investors should also note that SNV holds a PEG ratio of 0.51. 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. SNV's PEG compares to its industry's average PEG of 0.65. Within the past year, SNV's PEG has been as high as 1.70 and as low as 0.50, with a median of 1.35.

Investors should also recognize that SNV has a P/B ratio of 1.51. 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. SNV's current P/B looks attractive when compared to its industry's average P/B of 1.84. Over the past 12 months, SNV's P/B has been as high as 1.60 and as low as 1.03, with a median of 1.42.

Finally, our model also underscores that SNV has a P/CF ratio of 8.86. 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. SNV's current P/CF looks attractive when compared to its industry's average P/CF of 16.65. Over the past year, SNV's P/CF has been as high as 15.31 and as low as 7.72, with a median of 9.

United Bancoproration of Alabama (UBAB - Free Report) may be another strong Banks - Southeast stock to add to your shortlist. UBAB is a # 2 (Buy) stock with a Value grade of A.

United Bancoproration of Alabama sports a P/B ratio of 1.04 as well; this compares to its industry's price-to-book ratio of 1.84. In the past 52 weeks, UBAB's P/B has been as high as 1.16, as low as 0.86, with a median of 1.04.

These are just a handful of the figures considered in Synovus Financial and United Bancoproration of Alabama'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 SNV and UBAB is an impressive value stock right now.

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is “Will you get into the right stocks early when their growth potential is greatest?”

Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

Download FREE: How To Profit From Trillions On Spending For Infrastructure >>