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Should Value Investors Buy Banco Do Brasil (BDORY) Stock?

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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.

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.

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.

One stock to keep an eye on is Banco Do Brasil (BDORY - Free Report) . BDORY 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 2.83, which compares to its industry's average of 7.50. BDORY's Forward P/E has been as high as 12.78 and as low as 2.83, with a median of 3.62, all within the past year.

We should also highlight that BDORY has a P/B ratio of 0.54. 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. This company's current P/B looks solid when compared to its industry's average P/B of 1.43. Over the past 12 months, BDORY's P/B has been as high as 0.80 and as low as 0.52, with a median of 0.67.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BDORY has a P/S ratio of 0.42. This compares to its industry's average P/S of 1.2.

Another great Banks - Foreign stock you could consider is Nordea Bank (NRDBY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Nordea Bank is currently trading with a Forward P/E ratio of 9.18 while its PEG ratio sits at 1.03. Both of the company's metrics compare favorably to its industry's average P/E of 7.50 and average PEG ratio of 0.74.

NRDBY's Forward P/E has been as high as 11.30 and as low as 7.72, with a median of 9.06. During the same time period, its PEG ratio has been as high as 5.21, as low as 0.92, with a median of 1.84.

Nordea Bank also has a P/B ratio of 1.26 compared to its industry's price-to-book ratio of 1.43. Over the past year, its P/B ratio has been as high as 1.37, as low as 0.95, with a median of 1.12.

These are only a few of the key metrics included in Banco Do Brasil and Nordea Bank strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BDORY and NRDBY look like an impressive value stock at the moment.


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