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Should Value Investors Buy Stifel Financial (SF) Stock?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is Stifel Financial (SF - Free Report) . SF is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.51, which compares to its industry's average of 14.50. Over the past 52 weeks, SF's Forward P/E has been as high as 11.12 and as low as 10.31, with a median of 10.57.
We should also highlight that SF has a P/B ratio of 1.67. 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 attractive against its industry's average P/B of 2.88. Within the past 52 weeks, SF's P/B has been as high as 1.70 and as low as 1.26, with a median of 1.41.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SF has a P/S ratio of 1.73. This compares to its industry's average P/S of 2.21.
Finally, investors will want to recognize that SF has a P/CF ratio of 11.07. 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. SF's P/CF compares to its industry's average P/CF of 22.78. Within the past 12 months, SF's P/CF has been as high as 11.26 and as low as 7.34, with a median of 8.65.
Value investors will likely look at more than just these metrics, but the above data helps show that Stifel Financial is likely undervalued currently. And when considering the strength of its earnings outlook, SF sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Stifel Financial (SF) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is Stifel Financial (SF - Free Report) . SF is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.51, which compares to its industry's average of 14.50. Over the past 52 weeks, SF's Forward P/E has been as high as 11.12 and as low as 10.31, with a median of 10.57.
We should also highlight that SF has a P/B ratio of 1.67. 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 attractive against its industry's average P/B of 2.88. Within the past 52 weeks, SF's P/B has been as high as 1.70 and as low as 1.26, with a median of 1.41.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SF has a P/S ratio of 1.73. This compares to its industry's average P/S of 2.21.
Finally, investors will want to recognize that SF has a P/CF ratio of 11.07. 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. SF's P/CF compares to its industry's average P/CF of 22.78. Within the past 12 months, SF's P/CF has been as high as 11.26 and as low as 7.34, with a median of 8.65.
Value investors will likely look at more than just these metrics, but the above data helps show that Stifel Financial is likely undervalued currently. And when considering the strength of its earnings outlook, SF sticks out at as one of the market's strongest value stocks.