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Is Societe Generale Group (SCGLY) 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 Societe Generale Group (SCGLY - Free Report) . SCGLY 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 6.05, which compares to its industry's average of 8.28. Over the past year, SCGLY's Forward P/E has been as high as 9.21 and as low as 4.28, with a median of 5.70.

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. SCGLY has a P/S ratio of 0.79. This compares to its industry's average P/S of 1.49.

Finally, investors will want to recognize that SCGLY has a P/CF ratio of 8.43. 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. SCGLY's P/CF compares to its industry's average P/CF of 14.64. Over the past 52 weeks, SCGLY's P/CF has been as high as 8.91 and as low as 1.51, with a median of 3.37.

If you're looking for another solid Banks - Foreign value stock, take a look at Shinhan Financial Group Co (SHG - Free Report) . SHG is a # 1 (Strong Buy) stock with a Value score of A.

Shares of Shinhan Financial Group Co are currently trading at a forward earnings multiple of 4.16 and a PEG ratio of 0.39 compared to its industry's P/E and PEG ratios of 8.28 and 0.76, respectively.

Over the last 12 months, SHG's P/E has been as high as 5.32, as low as 3.06, with a median of 4.07, and its PEG ratio has been as high as 0.47, as low as 0.22, with a median of 0.36.

Shinhan Financial Group Co sports a P/B ratio of 0.45 as well; this compares to its industry's price-to-book ratio of 1.61. In the past 52 weeks, SHG's P/B has been as high as 0.52, as low as 0.31, with a median of 0.39.

These are just a handful of the figures considered in Societe Generale Group and Shinhan Financial Group Co'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 SCGLY and SHG is an impressive value stock right now.


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