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Are Investors Undervaluing Zions Bancorporation (ZION) 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Zions Bancorporation (ZION - Free Report) . ZION is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.50. This compares to its industry's average Forward P/E of 9.78. Over the past 52 weeks, ZION's Forward P/E has been as high as 11.20 and as low as 3.73, with a median of 8.01.
Another notable valuation metric for ZION is its P/B ratio of 1.16. 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. ZION's current P/B looks attractive when compared to its industry's average P/B of 1.20. Over the past year, ZION's P/B has been as high as 1.78 and as low as 0.62, with a median of 1.06.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ZION has a P/S ratio of 1.26. This compares to its industry's average P/S of 1.67.
Finally, investors will want to recognize that ZION has a P/CF ratio of 7.43. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. ZION's current P/CF looks attractive when compared to its industry's average P/CF of 8.45. Over the past 52 weeks, ZION's P/CF has been as high as 8.10 and as low as 2.85, with a median of 5.08.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Zions Bancorporation is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ZION feels like a great value stock at the moment.
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Are Investors Undervaluing Zions Bancorporation (ZION) Right Now?
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Zions Bancorporation (ZION - Free Report) . ZION is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.50. This compares to its industry's average Forward P/E of 9.78. Over the past 52 weeks, ZION's Forward P/E has been as high as 11.20 and as low as 3.73, with a median of 8.01.
Another notable valuation metric for ZION is its P/B ratio of 1.16. 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. ZION's current P/B looks attractive when compared to its industry's average P/B of 1.20. Over the past year, ZION's P/B has been as high as 1.78 and as low as 0.62, with a median of 1.06.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ZION has a P/S ratio of 1.26. This compares to its industry's average P/S of 1.67.
Finally, investors will want to recognize that ZION has a P/CF ratio of 7.43. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. ZION's current P/CF looks attractive when compared to its industry's average P/CF of 8.45. Over the past 52 weeks, ZION's P/CF has been as high as 8.10 and as low as 2.85, with a median of 5.08.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Zions Bancorporation is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ZION feels like a great value stock at the moment.