Back to top

Image: Bigstock

Should Value Investors Buy Manulife Financial Corp (MFC) Stock?

Read MoreHide Full Article

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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

One stock to keep an eye on is Manulife Financial Corp (MFC - Free Report) . MFC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Another notable valuation metric for MFC is its P/B ratio of 1.23. 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 stock's P/B looks solid versus its industry's average P/B of 1.73. MFC's P/B has been as high as 1.27 and as low as 0.85, with a median of 1.12, over the past year.

Finally, investors should note that MFC has a P/CF ratio of 6.47. 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. MFC's current P/CF looks attractive when compared to its industry's average P/CF of 10.36. Over the past year, MFC's P/CF has been as high as 7.70 and as low as 5.16, with a median of 6.28.

These are only a few of the key metrics included in Manulife Financial Corp'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, MFC looks like an impressive value stock at the moment.


See More Zacks Research for These Tickers


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


Manulife Financial Corp (MFC) - free report >>

Published in