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Is BNP Paribas (BNPQY) Stock Undervalued 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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.

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.

One stock to keep an eye on is BNP Paribas (BNPQY - Free Report) . BNPQY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 5.73, while its industry has an average P/E of 7.33. BNPQY's Forward P/E has been as high as 8.49 and as low as 5.25, with a median of 6.75, all within the past year.

Investors will also notice that BNPQY has a PEG ratio of 0.33. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BNPQY's PEG compares to its industry's average PEG of 0.71. BNPQY's PEG has been as high as 0.70 and as low as 0.31, with a median of 0.55, all within the past year.

Another valuation metric that we should highlight is BNPQY's P/B ratio of 0.59. The P/B is a method of comparing a stock's market value to 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 1.39. Within the past 52 weeks, BNPQY's P/B has been as high as 0.69 and as low as 0.40, with a median of 0.54.

Finally, we should also recognize that BNPQY has a P/CF ratio of 4.05. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.01. Over the past 52 weeks, BNPQY's P/CF has been as high as 5.01 and as low as 2.83, with a median of 4.06.

These are only a few of the key metrics included in BNP Paribas's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BNPQY looks like an impressive value stock at the moment.


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