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Are These Finance Stocks a Great Value Stocks Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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.

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 Intercorp Financial Services (IFS - Free Report) . IFS 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 6.80, while its industry has an average P/E of 12.88. IFS's Forward P/E has been as high as 13.04 and as low as 5.06, with a median of 7.82, all within the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. IFS has a P/S ratio of 2.27. This compares to its industry's average P/S of 2.41.

Jefferies Financial Group (JEF - Free Report) may be another strong Financial - Miscellaneous Services stock to add to your shortlist. JEF is a # 2 (Buy) stock with a Value grade of A.

Jefferies Financial Group also has a P/B ratio of 0.95 compared to its industry's price-to-book ratio of 4.40. Over the past year, its P/B ratio has been as high as 1.05, as low as 0.62, with a median of 0.81.

Value investors will likely look at more than just these metrics, but the above data helps show that Intercorp Financial Services and Jefferies Financial Group are likely undervalued currently. And when considering the strength of its earnings outlook, IFS and JEF sticks out as one of the market's strongest value stocks.


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Jefferies Financial Group Inc. (JEF) - free report >>

Intercorp Financial Services Inc. (IFS) - free report >>

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