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Should Value Investors Buy Banco Santander-Brazil (BSBR) Stock?

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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.

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.

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 value investors might notice is Banco Santander-Brazil (BSBR - Free Report) . BSBR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Investors should also note that BSBR holds a PEG ratio of 2.08. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BSBR's PEG compares to its industry's average PEG of 2.11. BSBR's PEG has been as high as 6.84 and as low as 0.76, with a median of 3.55, all within the past year.

Finally, investors will want to recognize that BSBR has a P/CF ratio of 8.10. 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 13.73. BSBR's P/CF has been as high as 10.04 and as low as 3.16, with a median of 5.09, all within the past year.

These are just a handful of the figures considered in Banco Santander-Brazil'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 BSBR is an impressive value stock right now.


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