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Is Societe Generale Group (SCGLY) Stock Undervalued Right Now?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

One company value investors might notice is Societe Generale Group (SCGLY - Free Report) . SCGLY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 5.72, which compares to its industry's average of 7.76. Over the last 12 months, SCGLY's Forward P/E has been as high as 9.21 and as low as 4.43, with a median of 7.60.

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. SCGLY has a P/S ratio of 0.55. This compares to its industry's average P/S of 1.33.

Finally, investors will want to recognize that SCGLY has a P/CF ratio of 3.43. 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. SCGLY's current P/CF looks attractive when compared to its industry's average P/CF of 11.77. Over the past 52 weeks, SCGLY's P/CF has been as high as 8.99 and as low as 3.14, with a median of 5.96.

These are only a few of the key metrics included in Societe Generale Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, SCGLY looks like an impressive value stock at the moment.


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