Is Franklin Resources (BEN) Stock Undervalued Right Now?

BEN

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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 Franklin Resources (BEN - Free Report) . BEN is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.

Finally, we should also recognize that BEN has a P/CF ratio of 9.98. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. BEN's current P/CF looks attractive when compared to its industry's average P/CF of 12.40. Within the past 12 months, BEN's P/CF has been as high as 22.09 and as low as 8.34, with a median of 17.29.

These are just a handful of the figures considered in Franklin Resources'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 BEN is an impressive value stock right now.

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