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Are Investors Undervaluing Franklin Resources (BEN) 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.
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 stock to keep an eye on is Franklin Resources (BEN - Free Report) . BEN is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock holds a P/E ratio of 10.04, while its industry has an average P/E of 15.20. Over the last 12 months, BEN's Forward P/E has been as high as 11.57 and as low as 7.36, with a median of 8.99.
Investors should also recognize that BEN has a P/B ratio of 0.97. 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 solid versus its industry's average P/B of 2.71. BEN's P/B has been as high as 1.04 and as low as 0.67, with a median of 0.83, over 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. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BEN has a P/S ratio of 1.37. This compares to its industry's average P/S of 3.26.
Finally, our model also underscores that BEN has a P/CF ratio of 13.34. 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. This stock's P/CF looks attractive against its industry's average P/CF of 38.32. Within the past 12 months, BEN's P/CF has been as high as 14.22 and as low as 7.79, with a median of 11.30.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Franklin Resources is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BEN feels like a great value stock at the moment.
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Are Investors Undervaluing Franklin Resources (BEN) 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.
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 stock to keep an eye on is Franklin Resources (BEN - Free Report) . BEN is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock holds a P/E ratio of 10.04, while its industry has an average P/E of 15.20. Over the last 12 months, BEN's Forward P/E has been as high as 11.57 and as low as 7.36, with a median of 8.99.
Investors should also recognize that BEN has a P/B ratio of 0.97. 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 solid versus its industry's average P/B of 2.71. BEN's P/B has been as high as 1.04 and as low as 0.67, with a median of 0.83, over 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. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BEN has a P/S ratio of 1.37. This compares to its industry's average P/S of 3.26.
Finally, our model also underscores that BEN has a P/CF ratio of 13.34. 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. This stock's P/CF looks attractive against its industry's average P/CF of 38.32. Within the past 12 months, BEN's P/CF has been as high as 14.22 and as low as 7.79, with a median of 11.30.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Franklin Resources is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BEN feels like a great value stock at the moment.