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Are Investors Undervaluing Shinhan Financial Group Co (SHG) Right Now?
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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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Shinhan Financial Group Co (SHG - Free Report) . SHG is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 5.32, which compares to its industry's average of 8.20. Over the past year, SHG's Forward P/E has been as high as 5.32 and as low as 3.06, with a median of 3.98.
Investors will also notice that SHG has a PEG ratio of 0.47. 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. SHG's industry has an average PEG of 0.79 right now. Over the past 52 weeks, SHG's PEG has been as high as 0.47 and as low as 0.22, with a median of 0.35.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SHG has a P/S ratio of 1.1. This compares to its industry's average P/S of 1.54.
Finally, investors will want to recognize that SHG has a P/CF ratio of 4.18. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.41. Over the past 52 weeks, SHG's P/CF has been as high as 4.41 and as low as 2.63, with a median of 3.47.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Shinhan Financial Group Co is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SHG feels like a great value stock at the moment.
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Are Investors Undervaluing Shinhan Financial Group Co (SHG) Right Now?
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Shinhan Financial Group Co (SHG - Free Report) . SHG is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 5.32, which compares to its industry's average of 8.20. Over the past year, SHG's Forward P/E has been as high as 5.32 and as low as 3.06, with a median of 3.98.
Investors will also notice that SHG has a PEG ratio of 0.47. 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. SHG's industry has an average PEG of 0.79 right now. Over the past 52 weeks, SHG's PEG has been as high as 0.47 and as low as 0.22, with a median of 0.35.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SHG has a P/S ratio of 1.1. This compares to its industry's average P/S of 1.54.
Finally, investors will want to recognize that SHG has a P/CF ratio of 4.18. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.41. Over the past 52 weeks, SHG's P/CF has been as high as 4.41 and as low as 2.63, with a median of 3.47.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Shinhan Financial Group Co is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SHG feels like a great value stock at the moment.