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Are Investors Undervaluing Intercorp Financial Services (IFS) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 company to watch right now is Intercorp Financial Services (IFS - Free Report) . IFS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 6.25. This compares to its industry's average Forward P/E of 12.60. Over the past year, IFS's Forward P/E has been as high as 13.04 and as low as 5.06, with a median of 7.56.
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 2.13. This compares to its industry's average P/S of 2.24.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Intercorp Financial Services is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, IFS feels like a great value stock at the moment.
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Are Investors Undervaluing Intercorp Financial Services (IFS) Right Now?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 company to watch right now is Intercorp Financial Services (IFS - Free Report) . IFS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 6.25. This compares to its industry's average Forward P/E of 12.60. Over the past year, IFS's Forward P/E has been as high as 13.04 and as low as 5.06, with a median of 7.56.
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 2.13. This compares to its industry's average P/S of 2.24.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Intercorp Financial Services is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, IFS feels like a great value stock at the moment.