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Should Value Investors Buy Shinhan Financial Group Co (SHG) Stock?
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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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 company to watch right now is Shinhan Financial Group Co (SHG - Free Report) . SHG is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 5.69, while its industry has an average P/E of 8.50. SHG's Forward P/E has been as high as 5.75 and as low as 3.65, with a median of 4.19, all within the past year.
Investors should also note that SHG holds a PEG ratio of 0.68. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SHG's industry currently sports an average PEG of 0.84. SHG's PEG has been as high as 2.74 and as low as 0.64, with a median of 1.23, all within the past year.
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. SHG has a P/S ratio of 0.76. This compares to its industry's average P/S of 1.23.
Finally, investors should note that SHG has a P/CF ratio of 4.55. 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. SHG's P/CF compares to its industry's average P/CF of 11.49. Over the past year, SHG's P/CF has been as high as 4.58 and as low as 3.30, with a median of 3.63.
Value investors will likely look at more than just these metrics, but the above data helps show that Shinhan Financial Group Co is likely undervalued currently. And when considering the strength of its earnings outlook, SHG sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Shinhan Financial Group Co (SHG) Stock?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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 company to watch right now is Shinhan Financial Group Co (SHG - Free Report) . SHG is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 5.69, while its industry has an average P/E of 8.50. SHG's Forward P/E has been as high as 5.75 and as low as 3.65, with a median of 4.19, all within the past year.
Investors should also note that SHG holds a PEG ratio of 0.68. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SHG's industry currently sports an average PEG of 0.84. SHG's PEG has been as high as 2.74 and as low as 0.64, with a median of 1.23, all within the past year.
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. SHG has a P/S ratio of 0.76. This compares to its industry's average P/S of 1.23.
Finally, investors should note that SHG has a P/CF ratio of 4.55. 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. SHG's P/CF compares to its industry's average P/CF of 11.49. Over the past year, SHG's P/CF has been as high as 4.58 and as low as 3.30, with a median of 3.63.
Value investors will likely look at more than just these metrics, but the above data helps show that Shinhan Financial Group Co is likely undervalued currently. And when considering the strength of its earnings outlook, SHG sticks out at as one of the market's strongest value stocks.