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Should Value Investors Buy Commerzbank (CRZBY) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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.
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.
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. The stock is trading with P/E ratio of 5.81 right now. For comparison, its industry sports an average P/E of 7.62. Over the past year, CRZBY's Forward P/E has been as high as 85.28 and as low as 5.68, with a median of 12.78.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.58. This compares to its industry's average P/S of 1.3.
Value investors will likely look at more than just these metrics, but the above data helps show that Commerzbank is likely undervalued currently. And when considering the strength of its earnings outlook, CRZBY sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Commerzbank (CRZBY) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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.
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.
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. The stock is trading with P/E ratio of 5.81 right now. For comparison, its industry sports an average P/E of 7.62. Over the past year, CRZBY's Forward P/E has been as high as 85.28 and as low as 5.68, with a median of 12.78.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.58. This compares to its industry's average P/S of 1.3.
Value investors will likely look at more than just these metrics, but the above data helps show that Commerzbank is likely undervalued currently. And when considering the strength of its earnings outlook, CRZBY sticks out at as one of the market's strongest value stocks.