Back to top

Image: Bigstock

Is Regions Financial (RF) Stock Undervalued Right Now?

Read MoreHide Full Article

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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Regions Financial (RF - Free Report) is a stock many investors are watching right now. RF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 7.69. This compares to its industry's average Forward P/E of 8.49. Over the past 52 weeks, RF's Forward P/E has been as high as 9.46 and as low as 6.63, with a median of 8.43.

We also note that RF holds a PEG ratio of 1.10. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. RF's industry has an average PEG of 1.31 right now. RF's PEG has been as high as 1.34 and as low as 0.47, with a median of 0.86, all within the past year.

Investors should also recognize that RF has a P/B ratio of 1.07. Investors use the P/B ratio to look at a stock's market value versus 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 1.53. Over the past 12 months, RF's P/B has been as high as 1.62 and as low as 0.95, with a median of 1.27.

Finally, our model also underscores that RF has a P/CF ratio of 6.20. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.46. RF's P/CF has been as high as 9.32 and as low as 5.58, with a median of 7.38, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Regions Financial is likely undervalued currently. And when considering the strength of its earnings outlook, RF sticks out at as one of the market's strongest value stocks.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Regions Financial Corporation (RF) - free report >>

Published in