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Should Value Investors Buy Deutsche Bank (DB) 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.

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.

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.

Deutsche Bank (DB - Free Report) is a stock many investors are watching right now. DB is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 9.31, which compares to its industry's average of 11.23. Over the last 12 months, DB's Forward P/E has been as high as 9.65 and as low as 5.11, with a median of 7.68.

Investors will also notice that DB has a PEG ratio of 0.39. 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. DB's PEG compares to its industry's average PEG of 0.70. Over the past 52 weeks, DB's PEG has been as high as 2.38 and as low as 0.33, with a median of 0.39.

Finally, investors will want to recognize that DB has a P/CF ratio of 7.64. 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. DB's current P/CF looks attractive when compared to its industry's average P/CF of 20.66. DB's P/CF has been as high as 7.90 and as low as 2.94, with a median of 5.72, all within the past year.

These are only a few of the key metrics included in Deutsche Bank's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, DB looks like an impressive value stock at the moment.


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