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Are Investors Undervaluing Commerzbank (CRZBY) Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 stock to keep an eye on is Commerzbank (CRZBY - Free Report) . CRZBY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 6.19, while its industry has an average P/E of 8.16. Over the past year, CRZBY's Forward P/E has been as high as 9.46 and as low as 5.98, with a median of 7.79.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CRZBY has a P/S ratio of 0.73. This compares to its industry's average P/S of 1.18.

Another great Banks - Foreign stock you could consider is Grupo Supervielle (SUPV - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.

Grupo Supervielle sports a P/B ratio of 0.65 as well; this compares to its industry's price-to-book ratio of 1.60. In the past 52 weeks, SUPV's P/B has been as high as 0.65, as low as 0.26, with a median of 0.36.

Value investors will likely look at more than just these metrics, but the above data helps show that Commerzbank and Grupo Supervielle are likely undervalued currently. And when considering the strength of its earnings outlook, CRZBY and SUPV sticks out as one of the market's strongest value stocks.


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Commerzbank AG (CRZBY) - free report >>

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