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Should Value Investors Buy These Finance Stocks?

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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 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.

Grupo Financiero Galicia (GGAL - Free Report) is a stock many investors are watching right now. GGAL is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 3.42. This compares to its industry's average Forward P/E of 9.32. Over the past year, GGAL's Forward P/E has been as high as 5.67 and as low as 2.80, with a median of 3.56.

Investors should also recognize that GGAL has a P/B ratio of 0.58. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. GGAL's current P/B looks attractive when compared to its industry's average P/B of 1.60. Within the past 52 weeks, GGAL's P/B has been as high as 0.69 and as low as 0.41, with a median of 0.49.

Investors could also keep in mind Societe Generale Group (SCGLY - Free Report) , an Banks - Foreign stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Societe Generale Group is trading at a forward earnings multiple of 7.54 at the moment, with a PEG ratio of 2.87. This compares to its industry's average P/E of 9.32 and average PEG ratio of 0.50.


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