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Are Investors Undervaluing Shinhan Financial Group Co (SHG) Right Now?
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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Shinhan Financial Group Co (SHG - Free Report) . SHG is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.31, which compares to its industry's average of 11.67. Over the past 52 weeks, SHG's Forward P/E has been as high as 7.09 and as low as 4.11, with a median of 5.60.
We also note that SHG holds a PEG ratio of 0.51. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SHG's industry currently sports an average PEG of 0.71. Over the last 12 months, SHG's PEG has been as high as 0.72 and as low as 0.37, with a median of 0.51.
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. SHG has a P/S ratio of 1.29. This compares to its industry's average P/S of 2.18.
These are just a handful of the figures considered in Shinhan Financial Group Co'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 SHG is an impressive value stock right now.
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Are Investors Undervaluing Shinhan Financial Group Co (SHG) Right Now?
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Shinhan Financial Group Co (SHG - Free Report) . SHG is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.31, which compares to its industry's average of 11.67. Over the past 52 weeks, SHG's Forward P/E has been as high as 7.09 and as low as 4.11, with a median of 5.60.
We also note that SHG holds a PEG ratio of 0.51. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SHG's industry currently sports an average PEG of 0.71. Over the last 12 months, SHG's PEG has been as high as 0.72 and as low as 0.37, with a median of 0.51.
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. SHG has a P/S ratio of 1.29. This compares to its industry's average P/S of 2.18.
These are just a handful of the figures considered in Shinhan Financial Group Co'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 SHG is an impressive value stock right now.