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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is UBS (UBS - Free Report) . UBS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 6.96, while its industry has an average P/E of 7.89. UBS's Forward P/E has been as high as 10.21 and as low as 6.90, with a median of 9.19, all within the past year.
Another notable valuation metric for UBS is its P/B ratio of 0.94. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.28. UBS's P/B has been as high as 1.22 and as low as 0.86, with a median of 1.02, over 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. UBS has a P/S ratio of 1.35. This compares to its industry's average P/S of 1.58.
Finally, investors will want to recognize that UBS has a P/CF ratio of 5.73. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. UBS's current P/CF looks attractive when compared to its industry's average P/CF of 11.87. Over the past 52 weeks, UBS's P/CF has been as high as 7.95 and as low as 5.42, with a median of 6.38.
Value investors will likely look at more than just these metrics, but the above data helps show that UBS is likely undervalued currently. And when considering the strength of its earnings outlook, UBS sticks out at as one of the market's strongest value stocks.
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Is UBS (UBS) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is UBS (UBS - Free Report) . UBS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 6.96, while its industry has an average P/E of 7.89. UBS's Forward P/E has been as high as 10.21 and as low as 6.90, with a median of 9.19, all within the past year.
Another notable valuation metric for UBS is its P/B ratio of 0.94. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.28. UBS's P/B has been as high as 1.22 and as low as 0.86, with a median of 1.02, over 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. UBS has a P/S ratio of 1.35. This compares to its industry's average P/S of 1.58.
Finally, investors will want to recognize that UBS has a P/CF ratio of 5.73. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. UBS's current P/CF looks attractive when compared to its industry's average P/CF of 11.87. Over the past 52 weeks, UBS's P/CF has been as high as 7.95 and as low as 5.42, with a median of 6.38.
Value investors will likely look at more than just these metrics, but the above data helps show that UBS is likely undervalued currently. And when considering the strength of its earnings outlook, UBS sticks out at as one of the market's strongest value stocks.