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Should Value Investors Buy Intercorp Financial Services (IFS) 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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 company value investors might notice is Intercorp Financial Services (IFS - Free Report) . IFS is currently sporting a Zacks Rank #2 (Buy) and an A for Value.

Another valuation metric that we should highlight is IFS's P/B ratio of 1.46. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. IFS's current P/B looks attractive when compared to its industry's average P/B of 2.94. IFS's P/B has been as high as 1.53 and as low as 1.04, with a median of 1.26, over the past year.

Finally, our model also underscores that IFS has a P/CF ratio of 7.19. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. IFS's P/CF compares to its industry's average P/CF of 16.94. Within the past 12 months, IFS's P/CF has been as high as 8.71 and as low as 6.22, with a median of 7.53.

If you're looking for another solid Financial - Miscellaneous Services value stock, take a look at StoneX Group (SNEX - Free Report) . SNEX is a Zacks Rank of #2 (Buy) stock with a Value score of A.

StoneX Group also has a P/B ratio of 2.29 compared to its industry's price-to-book ratio of 2.94. Over the past year, its P/B ratio has been as high as 2.58, as low as 1.50, with a median of 2.11.

These are just a handful of the figures considered in Intercorp Financial Services and StoneX Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that IFS and SNEX is an impressive value stock right now.


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Intercorp Financial Services Inc. (IFS) - free report >>

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