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Should Value Investors Buy Commerzbank (CRZBY) Stock?

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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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Commerzbank (CRZBY - Free Report) is a stock many investors are watching right now. CRZBY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. CRZBY has a P/S ratio of 0.95. This compares to its industry's average P/S of 1.74.

Finally, investors will want to recognize that CRZBY has a P/CF ratio of 4.61. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. CRZBY's P/CF compares to its industry's average P/CF of 14.57. Within the past 12 months, CRZBY's P/CF has been as high as 4.61 and as low as 2.27, with a median of 3.08.

These are just a handful of the figures considered in Commerzbank's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CRZBY is an impressive value stock right now.


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