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Are Investors Undervaluing These Finance Stocks Right Now?
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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, 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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is BGC Partners . BGCP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 6.85 right now. For comparison, its industry sports an average P/E of 14.18. Over the last 12 months, BGCP's Forward P/E has been as high as 9.53 and as low as 5.06, with a median of 7.57.
We should also highlight that BGCP has a P/B ratio of 2.64. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. BGCP's current P/B looks attractive when compared to its industry's average P/B of 2.70. Over the past 12 months, BGCP's P/B has been as high as 3.11 and as low as 1.62, with a median of 2.53.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BGCP has a P/S ratio of 0.87. This compares to its industry's average P/S of 2.06.
Finally, investors will want to recognize that BGCP has a P/CF ratio of 8.91. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. BGCP's P/CF compares to its industry's average P/CF of 17.93. Over the past 52 weeks, BGCP's P/CF has been as high as 15.19 and as low as 6.35, with a median of 12.63.
If you're looking for another solid Financial - Investment Bank value stock, take a look at Morgan Stanley (MS - Free Report) . MS is a # 2 (Buy) stock with a Value score of A.
Shares of Morgan Stanley are currently trading at a forward earnings multiple of 13.49 and a PEG ratio of 1.92 compared to its industry's P/E and PEG ratios of 14.18 and 0.89, respectively.
MS's Forward P/E has been as high as 14.58 and as low as 11.69, with a median of 13.29. During the same time period, its PEG ratio has been as high as 2.30, as low as 1.17, with a median of 1.95.
Morgan Stanley sports a P/B ratio of 1.79 as well; this compares to its industry's price-to-book ratio of 2.70. In the past 52 weeks, MS's P/B has been as high as 1.92, as low as 1.30, with a median of 1.65.
These are only a few of the key metrics included in BGC Partners and Morgan Stanley strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BGCP and MS look like an impressive value stock at the moment.
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Are Investors Undervaluing These Finance Stocks Right Now?
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, 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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is BGC Partners . BGCP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 6.85 right now. For comparison, its industry sports an average P/E of 14.18. Over the last 12 months, BGCP's Forward P/E has been as high as 9.53 and as low as 5.06, with a median of 7.57.
We should also highlight that BGCP has a P/B ratio of 2.64. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. BGCP's current P/B looks attractive when compared to its industry's average P/B of 2.70. Over the past 12 months, BGCP's P/B has been as high as 3.11 and as low as 1.62, with a median of 2.53.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BGCP has a P/S ratio of 0.87. This compares to its industry's average P/S of 2.06.
Finally, investors will want to recognize that BGCP has a P/CF ratio of 8.91. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. BGCP's P/CF compares to its industry's average P/CF of 17.93. Over the past 52 weeks, BGCP's P/CF has been as high as 15.19 and as low as 6.35, with a median of 12.63.
If you're looking for another solid Financial - Investment Bank value stock, take a look at Morgan Stanley (MS - Free Report) . MS is a # 2 (Buy) stock with a Value score of A.
Shares of Morgan Stanley are currently trading at a forward earnings multiple of 13.49 and a PEG ratio of 1.92 compared to its industry's P/E and PEG ratios of 14.18 and 0.89, respectively.
MS's Forward P/E has been as high as 14.58 and as low as 11.69, with a median of 13.29. During the same time period, its PEG ratio has been as high as 2.30, as low as 1.17, with a median of 1.95.
Morgan Stanley sports a P/B ratio of 1.79 as well; this compares to its industry's price-to-book ratio of 2.70. In the past 52 weeks, MS's P/B has been as high as 1.92, as low as 1.30, with a median of 1.65.
These are only a few of the key metrics included in BGC Partners and Morgan Stanley strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BGCP and MS look like an impressive value stock at the moment.