We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should Value Investors Buy PennyMac Financial Services (PFSI) Stock?
Read MoreHide Full Article
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is PennyMac Financial Services (PFSI - Free Report) . PFSI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 6.66. This compares to its industry's average Forward P/E of 7.68. Over the last 12 months, PFSI's Forward P/E has been as high as 8.25 and as low as 3.47, with a median of 5.16.
Investors should also recognize that PFSI has a P/B ratio of 0.81. 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. PFSI's current P/B looks attractive when compared to its industry's average P/B of 1.31. Within the past 52 weeks, PFSI's P/B has been as high as 1.22 and as low as 0.64, with a median of 0.86.
Finally, our model also underscores that PFSI has a P/CF ratio of 4.14. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.16. Over the past 52 weeks, PFSI's P/CF has been as high as 4.48 and as low as 2.72, with a median of 3.41.
Value investors will likely look at more than just these metrics, but the above data helps show that PennyMac Financial Services is likely undervalued currently. And when considering the strength of its earnings outlook, PFSI sticks out at as one of the market's strongest value stocks.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should Value Investors Buy PennyMac Financial Services (PFSI) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is PennyMac Financial Services (PFSI - Free Report) . PFSI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 6.66. This compares to its industry's average Forward P/E of 7.68. Over the last 12 months, PFSI's Forward P/E has been as high as 8.25 and as low as 3.47, with a median of 5.16.
Investors should also recognize that PFSI has a P/B ratio of 0.81. 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. PFSI's current P/B looks attractive when compared to its industry's average P/B of 1.31. Within the past 52 weeks, PFSI's P/B has been as high as 1.22 and as low as 0.64, with a median of 0.86.
Finally, our model also underscores that PFSI has a P/CF ratio of 4.14. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.16. Over the past 52 weeks, PFSI's P/CF has been as high as 4.48 and as low as 2.72, with a median of 3.41.
Value investors will likely look at more than just these metrics, but the above data helps show that PennyMac Financial Services is likely undervalued currently. And when considering the strength of its earnings outlook, PFSI sticks out at as one of the market's strongest value stocks.