We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should Value Investors Buy Erste Group Bank (EBKDY) Stock?
Read MoreHide Full Article
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.
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Erste Group Bank (EBKDY - Free Report) is a stock many investors are watching right now. EBKDY is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 9.35, which compares to its industry's average of 11.98. Over the past year, EBKDY's Forward P/E has been as high as 10.29 and as low as 6.23, with a median of 8.45.
EBKDY is also sporting a PEG ratio of 0.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. EBKDY's industry currently sports an average PEG of 0.81. EBKDY's PEG has been as high as 1.26 and as low as 0.69, with a median of 0.95, all within the past year.
Another notable valuation metric for EBKDY is its P/B ratio of 1.08. The P/B ratio pits a stock's market value against 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 2.29. Within the past 52 weeks, EBKDY's P/B has been as high as 1.14 and as low as 0.67, with a median of 0.86.
Finally, we should also recognize that EBKDY has a P/CF ratio of 10.47. 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 17.81. Over the past year, EBKDY's P/CF has been as high as 11.04 and as low as 5.24, with a median of 7.68.
Value investors will likely look at more than just these metrics, but the above data helps show that Erste Group Bank is likely undervalued currently. And when considering the strength of its earnings outlook, EBKDY sticks out as one of the market's strongest value stocks.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should Value Investors Buy Erste Group Bank (EBKDY) Stock?
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.
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Erste Group Bank (EBKDY - Free Report) is a stock many investors are watching right now. EBKDY is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 9.35, which compares to its industry's average of 11.98. Over the past year, EBKDY's Forward P/E has been as high as 10.29 and as low as 6.23, with a median of 8.45.
EBKDY is also sporting a PEG ratio of 0.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. EBKDY's industry currently sports an average PEG of 0.81. EBKDY's PEG has been as high as 1.26 and as low as 0.69, with a median of 0.95, all within the past year.
Another notable valuation metric for EBKDY is its P/B ratio of 1.08. The P/B ratio pits a stock's market value against 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 2.29. Within the past 52 weeks, EBKDY's P/B has been as high as 1.14 and as low as 0.67, with a median of 0.86.
Finally, we should also recognize that EBKDY has a P/CF ratio of 10.47. 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 17.81. Over the past year, EBKDY's P/CF has been as high as 11.04 and as low as 5.24, with a median of 7.68.
Value investors will likely look at more than just these metrics, but the above data helps show that Erste Group Bank is likely undervalued currently. And when considering the strength of its earnings outlook, EBKDY sticks out as one of the market's strongest value stocks.