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Should Value Investors Buy Nordea Bank (NRDBY) 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.
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Nordea Bank (NRDBY - Free Report) is a stock many investors are watching right now. NRDBY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.65, which compares to its industry's average of 7.72. Over the past year, NRDBY's Forward P/E has been as high as 10.41 and as low as 7.04, with a median of 8.70.
Another valuation metric that we should highlight is NRDBY's P/B ratio of 1.31. 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 stock's P/B looks attractive against its industry's average P/B of 1.49. Over the past year, NRDBY's P/B has been as high as 1.42 and as low as 0.97, with a median of 1.23.
Finally, investors will want to recognize that NRDBY has a P/CF ratio of 8.48. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. NRDBY's current P/CF looks attractive when compared to its industry's average P/CF of 13. NRDBY's P/CF has been as high as 12.66 and as low as 7.58, with a median of 9.70, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Nordea Bank is likely undervalued currently. And when considering the strength of its earnings outlook, NRDBY sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Nordea Bank (NRDBY) 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.
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Nordea Bank (NRDBY - Free Report) is a stock many investors are watching right now. NRDBY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.65, which compares to its industry's average of 7.72. Over the past year, NRDBY's Forward P/E has been as high as 10.41 and as low as 7.04, with a median of 8.70.
Another valuation metric that we should highlight is NRDBY's P/B ratio of 1.31. 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 stock's P/B looks attractive against its industry's average P/B of 1.49. Over the past year, NRDBY's P/B has been as high as 1.42 and as low as 0.97, with a median of 1.23.
Finally, investors will want to recognize that NRDBY has a P/CF ratio of 8.48. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. NRDBY's current P/CF looks attractive when compared to its industry's average P/CF of 13. NRDBY's P/CF has been as high as 12.66 and as low as 7.58, with a median of 9.70, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Nordea Bank is likely undervalued currently. And when considering the strength of its earnings outlook, NRDBY sticks out at as one of the market's strongest value stocks.