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Are Investors Undervaluing BNP Paribas (BNPQY) Right Now?

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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.

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.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is BNP Paribas (BNPQY - Free Report) . BNPQY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 7.23, which compares to its industry's average of 8.39. Over the past year, BNPQY's Forward P/E has been as high as 7.44 and as low as 5.48, with a median of 6.22.

Another notable valuation metric for BNPQY is its P/B ratio of 0.58. 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 1.50. Over the past 12 months, BNPQY's P/B has been as high as 0.58 and as low as 0.47, with a median of 0.54.

Finally, we should also recognize that BNPQY has a P/CF ratio of 3.97. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. BNPQY's current P/CF looks attractive when compared to its industry's average P/CF of 11.40. BNPQY's P/CF has been as high as 4.50 and as low as 3.19, with a median of 3.88, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that BNP Paribas is likely undervalued currently. And when considering the strength of its earnings outlook, BNPQY sticks out at as one of the market's strongest value stocks.


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