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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 Popular (BPOP - Free Report) . BPOP is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 10.17. This compares to its industry's average Forward P/E of 11.13. BPOP's Forward P/E has been as high as 11.26 and as low as 7.81, with a median of 9.43, all within the past year.
We also note that BPOP holds a PEG ratio of 0.60. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BPOP's PEG compares to its industry's average PEG of 1.19. Over the past 52 weeks, BPOP's PEG has been as high as 0.92 and as low as 0.50, with a median of 0.60.
Investors should also recognize that BPOP has a P/B ratio of 1.44. Investors use the P/B ratio to look at a stock's market value versus 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 1.89. Over the past 12 months, BPOP's P/B has been as high as 1.44 and as low as 0.98, with a median of 1.25.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BPOP has a P/S ratio of 1.94. This compares to its industry's average P/S of 2.27.
Finally, investors will want to recognize that BPOP has a P/CF ratio of 16.54. 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. This stock's P/CF looks attractive against its industry's average P/CF of 16.63. BPOP's P/CF has been as high as 19.54 and as low as 11.90, with a median of 16.06, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Popular is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BPOP feels like a great value stock at the moment.
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Is Popular (BPOP) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 Popular (BPOP - Free Report) . BPOP is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 10.17. This compares to its industry's average Forward P/E of 11.13. BPOP's Forward P/E has been as high as 11.26 and as low as 7.81, with a median of 9.43, all within the past year.
We also note that BPOP holds a PEG ratio of 0.60. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BPOP's PEG compares to its industry's average PEG of 1.19. Over the past 52 weeks, BPOP's PEG has been as high as 0.92 and as low as 0.50, with a median of 0.60.
Investors should also recognize that BPOP has a P/B ratio of 1.44. Investors use the P/B ratio to look at a stock's market value versus 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 1.89. Over the past 12 months, BPOP's P/B has been as high as 1.44 and as low as 0.98, with a median of 1.25.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BPOP has a P/S ratio of 1.94. This compares to its industry's average P/S of 2.27.
Finally, investors will want to recognize that BPOP has a P/CF ratio of 16.54. 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. This stock's P/CF looks attractive against its industry's average P/CF of 16.63. BPOP's P/CF has been as high as 19.54 and as low as 11.90, with a median of 16.06, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Popular is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BPOP feels like a great value stock at the moment.