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Should Value Investors Buy Grupo Cibest S.A. - Sponsored ADR (CIB) Stock?

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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.

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.

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 value investors might notice is Grupo Cibest S.A. - Sponsored ADR (CIB - Free Report) . CIB is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 7.33, while its industry has an average P/E of 10.40. Over the last 12 months, CIB's Forward P/E has been as high as 7.66 and as low as 5.05, with a median of 6.54.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CIB has a P/S ratio of 1.24. This compares to its industry's average P/S of 1.85.

Finally, we should also recognize that CIB has a P/CF ratio of 11.59. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. CIB's current P/CF looks attractive when compared to its industry's average P/CF of 17.54. Over the past year, CIB's P/CF has been as high as 11.97 and as low as 3.94, with a median of 7.12.

Value investors will likely look at more than just these metrics, but the above data helps show that Grupo Cibest S.A. - Sponsored ADR is likely undervalued currently. And when considering the strength of its earnings outlook, CIB sticks out as one of the market's strongest value stocks.


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