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Should Value Investors Buy Regions Financial (RF) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Regions Financial (RF - Free Report) is a stock many investors are watching right now. RF is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 7.19 right now. For comparison, its industry sports an average P/E of 8.16. RF's Forward P/E has been as high as 10.98 and as low as 6.85, with a median of 8.94, all within the past year.
Investors should also note that RF holds a PEG ratio of 0.71. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. RF's industry has an average PEG of 0.79 right now. Within the past year, RF's PEG has been as high as 0.93 and as low as 0.27, with a median of 0.61.
Another valuation metric that we should highlight is RF's P/B ratio of 1.20. 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 1.55. Over the past year, RF's P/B has been as high as 1.62 and as low as 1.13, with a median of 1.38.
Finally, investors should note that RF has a P/CF ratio of 6.63. 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. RF's P/CF compares to its industry's average P/CF of 10. Within the past 12 months, RF's P/CF has been as high as 9.32 and as low as 6.23, with a median of 7.86.
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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Should Value Investors Buy Regions Financial (RF) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Regions Financial (RF - Free Report) is a stock many investors are watching right now. RF is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 7.19 right now. For comparison, its industry sports an average P/E of 8.16. RF's Forward P/E has been as high as 10.98 and as low as 6.85, with a median of 8.94, all within the past year.
Investors should also note that RF holds a PEG ratio of 0.71. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. RF's industry has an average PEG of 0.79 right now. Within the past year, RF's PEG has been as high as 0.93 and as low as 0.27, with a median of 0.61.
Another valuation metric that we should highlight is RF's P/B ratio of 1.20. 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 1.55. Over the past year, RF's P/B has been as high as 1.62 and as low as 1.13, with a median of 1.38.
Finally, investors should note that RF has a P/CF ratio of 6.63. 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. RF's P/CF compares to its industry's average P/CF of 10. Within the past 12 months, RF's P/CF has been as high as 9.32 and as low as 6.23, with a median of 7.86.
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.