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Is BNP Paribas SA (BNPQY) Stock Undervalued Right Now?

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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.

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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is BNP Paribas SA (BNPQY - Free Report) . BNPQY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.39, while its industry has an average P/E of 10.75. Over the last 12 months, BNPQY's Forward P/E has been as high as 10.52 and as low as 4.13, with a median of 8.39.

BNPQY is also sporting a PEG ratio of 0.90. 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. BNPQY's PEG compares to its industry's average PEG of 1.97. Within the past year, BNPQY's PEG has been as high as 2.94 and as low as 0.88, with a median of 1.91.

Another valuation metric that we should highlight is BNPQY's P/B ratio of 0.58. The P/B is a method of comparing a stock's market value to 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 0.97. Over the past 12 months, BNPQY's P/B has been as high as 0.59 and as low as 0.27, with a median of 0.42.

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. BNPQY has a P/S ratio of 1.53. This compares to its industry's average P/S of 1.83.

Finally, we should also recognize that BNPQY has a P/CF ratio of 5.40. 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. BNPQY's P/CF compares to its industry's average P/CF of 13.73. Over the past 52 weeks, BNPQY's P/CF has been as high as 5.56 and as low as 2.18, with a median of 3.72.

These figures are just a handful of the metrics value investors tend to look at, but they help show that BNP Paribas SA is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BNPQY feels like a great value stock at the moment.

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