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Are Investors Undervaluing Grupo Financiero Galicia (GGAL) 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.
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 Grupo Financiero Galicia (GGAL - Free Report) . GGAL is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.10. This compares to its industry's average Forward P/E of 9.44. GGAL's Forward P/E has been as high as 10.72 and as low as 6.12, with a median of 8.05, all within the past year.
We should also highlight that GGAL has a P/B ratio of 1.34. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. GGAL's current P/B looks attractive when compared to its industry's average P/B of 2.15. Within the past 52 weeks, GGAL's P/B has been as high as 2.08 and as low as 0.94, 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. GGAL has a P/S ratio of 0.67. This compares to its industry's average P/S of 1.57.
Investors could also keep in mind Grupo Supervielle (SUPV - Free Report) , an Banks - Foreign stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Grupo Supervielle is trading at a forward earnings multiple of 7.79 at the moment, with a PEG ratio of 2.33. This compares to its industry's average P/E of 9.44 and average PEG ratio of 0.76.
SUPV's Forward P/E has been as high as 12.16 and as low as 5.93, with a median of 8.40. During the same time period, its PEG ratio has been as high as 7, as low as 2.25, with a median of 4.56.
Grupo Supervielle sports a P/B ratio of 1.22 as well; this compares to its industry's price-to-book ratio of 2.15. In the past 52 weeks, SUPV's P/B has been as high as 1.93, as low as 0.69, with a median of 1.24.
Value investors will likely look at more than just these metrics, but the above data helps show that Grupo Financiero Galicia and Grupo Supervielle are likely undervalued currently. And when considering the strength of its earnings outlook, GGAL and SUPV sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing Grupo Financiero Galicia (GGAL) Right Now?
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.
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 Grupo Financiero Galicia (GGAL - Free Report) . GGAL is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.10. This compares to its industry's average Forward P/E of 9.44. GGAL's Forward P/E has been as high as 10.72 and as low as 6.12, with a median of 8.05, all within the past year.
We should also highlight that GGAL has a P/B ratio of 1.34. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. GGAL's current P/B looks attractive when compared to its industry's average P/B of 2.15. Within the past 52 weeks, GGAL's P/B has been as high as 2.08 and as low as 0.94, 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. GGAL has a P/S ratio of 0.67. This compares to its industry's average P/S of 1.57.
Investors could also keep in mind Grupo Supervielle (SUPV - Free Report) , an Banks - Foreign stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Grupo Supervielle is trading at a forward earnings multiple of 7.79 at the moment, with a PEG ratio of 2.33. This compares to its industry's average P/E of 9.44 and average PEG ratio of 0.76.
SUPV's Forward P/E has been as high as 12.16 and as low as 5.93, with a median of 8.40. During the same time period, its PEG ratio has been as high as 7, as low as 2.25, with a median of 4.56.
Grupo Supervielle sports a P/B ratio of 1.22 as well; this compares to its industry's price-to-book ratio of 2.15. In the past 52 weeks, SUPV's P/B has been as high as 1.93, as low as 0.69, with a median of 1.24.
Value investors will likely look at more than just these metrics, but the above data helps show that Grupo Financiero Galicia and Grupo Supervielle are likely undervalued currently. And when considering the strength of its earnings outlook, GGAL and SUPV sticks out as one of the market's strongest value stocks.