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Is Stifel Financial (SF) Stock Undervalued Right Now?

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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.

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 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.

One company to watch right now 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 has a Forward P/E ratio of 10.23. This compares to its industry's average Forward P/E of 14.64. Over the past year, SF's Forward P/E has been as high as 11.12 and as low as 10.17, with a median of 10.53.

Investors should also recognize that SF has a P/B ratio of 1.64. The P/B ratio pits a stock's market value against 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 2.93. 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 1.42.

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 2.26.

Finally, we should also recognize that SF has a P/CF ratio of 10.88. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. SF's P/CF compares to its industry's average P/CF of 23.06. Over the past year, SF's P/CF has been as high as 11.26 and as low as 7.34, with a median of 8.71.

These are just a handful of the figures considered in Stifel Financial's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SF is an impressive value stock right now.


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