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Is Regions Financial (RF) a Great Value Stock 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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 company value investors might notice is Regions Financial (RF - Free Report) . RF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 9.01, which compares to its industry's average of 9.65. Over the past year, RF's Forward P/E has been as high as 12.16 and as low as 7.77, with a median of 9.94.
RF is also sporting a PEG ratio of 0.30. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. RF's PEG compares to its industry's average PEG of 0.40. Over the last 12 months, RF's PEG has been as high as 1.48 and as low as 0.27, with a median of 0.68.
Another valuation metric that we should highlight is RF's P/B ratio of 1.33. Investors use the P/B ratio to look at a stock's market value versus 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 1.79. Over the past 12 months, RF's P/B has been as high as 1.45 and as low as 1.11, with a median of 1.27.
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. RF has a P/S ratio of 2.89. This compares to its industry's average P/S of 2.95.
Finally, investors should note that RF has a P/CF ratio of 7.67. 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. RF's P/CF compares to its industry's average P/CF of 11.37. Within the past 12 months, RF's P/CF has been as high as 8.42 and as low as 6.22, with a median of 7.12.
These are only a few of the key metrics included in Regions Financial'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, RF looks like an impressive value stock at the moment.
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Is Regions Financial (RF) a Great Value Stock 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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 company value investors might notice is Regions Financial (RF - Free Report) . RF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 9.01, which compares to its industry's average of 9.65. Over the past year, RF's Forward P/E has been as high as 12.16 and as low as 7.77, with a median of 9.94.
RF is also sporting a PEG ratio of 0.30. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. RF's PEG compares to its industry's average PEG of 0.40. Over the last 12 months, RF's PEG has been as high as 1.48 and as low as 0.27, with a median of 0.68.
Another valuation metric that we should highlight is RF's P/B ratio of 1.33. Investors use the P/B ratio to look at a stock's market value versus 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 1.79. Over the past 12 months, RF's P/B has been as high as 1.45 and as low as 1.11, with a median of 1.27.
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. RF has a P/S ratio of 2.89. This compares to its industry's average P/S of 2.95.
Finally, investors should note that RF has a P/CF ratio of 7.67. 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. RF's P/CF compares to its industry's average P/CF of 11.37. Within the past 12 months, RF's P/CF has been as high as 8.42 and as low as 6.22, with a median of 7.12.
These are only a few of the key metrics included in Regions Financial'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, RF looks like an impressive value stock at the moment.