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Is Regions Financial (RF) Stock Undervalued 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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.
One company to watch right now is Regions Financial (RF - Free Report) . RF is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.99, while its industry has an average P/E of 9.73. Over the past 52 weeks, RF's Forward P/E has been as high as 12.16 and as low as 7.77, with a median of 9.94.
Investors should also note that RF holds a PEG ratio of 0.30. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. RF's PEG compares to its industry's average PEG of 0.41. 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 0.65.
We should also highlight that RF has a P/B ratio of 1.38. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.90. Over the past year, RF's P/B has been as high as 1.46 and as low as 1.11, with a median of 1.30.
Finally, our model also underscores that RF has a P/CF ratio of 7.95. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. RF's current P/CF looks attractive when compared to its industry's average P/CF of 12.24. RF's P/CF has been as high as 8.42 and as low as 6.22, with a median of 7.29, all within the past year.
These are just a handful of the figures considered in Regions Financial'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 RF is an impressive value stock right now.
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Is Regions Financial (RF) Stock Undervalued 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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.
One company to watch right now is Regions Financial (RF - Free Report) . RF is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.99, while its industry has an average P/E of 9.73. Over the past 52 weeks, RF's Forward P/E has been as high as 12.16 and as low as 7.77, with a median of 9.94.
Investors should also note that RF holds a PEG ratio of 0.30. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. RF's PEG compares to its industry's average PEG of 0.41. 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 0.65.
We should also highlight that RF has a P/B ratio of 1.38. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.90. Over the past year, RF's P/B has been as high as 1.46 and as low as 1.11, with a median of 1.30.
Finally, our model also underscores that RF has a P/CF ratio of 7.95. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. RF's current P/CF looks attractive when compared to its industry's average P/CF of 12.24. RF's P/CF has been as high as 8.42 and as low as 6.22, with a median of 7.29, all within the past year.
These are just a handful of the figures considered in Regions Financial'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 RF is an impressive value stock right now.