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Is Grupo Financiero Banorte (GBOOY) Stock Undervalued 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company value investors might notice is Grupo Financiero Banorte (GBOOY - Free Report) . GBOOY is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.19, while its industry has an average P/E of 19.44. Over the past year, GBOOY's Forward P/E has been as high as 8.47 and as low as 5.98, with a median of 6.98.
We also note that GBOOY holds a PEG ratio of 0.98. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. GBOOY's industry currently sports an average PEG of 1.03. Over the last 12 months, GBOOY's PEG has been as high as 1.02 and as low as 0.61, with a median of 0.78.
Another valuation metric that we should highlight is GBOOY's P/B ratio of 2.15. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.86. Within the past 52 weeks, GBOOY's P/B has been as high as 2.22 and as low as 1.32, with a median of 1.56.
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. GBOOY has a P/S ratio of 1.48. This compares to its industry's average P/S of 2.25.
Finally, investors will want to recognize that GBOOY has a P/CF ratio of 8.61. 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. GBOOY's current P/CF looks attractive when compared to its industry's average P/CF of 14.02. Within the past 12 months, GBOOY's P/CF has been as high as 8.90 and as low as 4.42, with a median of 6.16.
These are just a handful of the figures considered in Grupo Financiero Banorte'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 GBOOY is an impressive value stock right now.
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Is Grupo Financiero Banorte (GBOOY) Stock Undervalued 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company value investors might notice is Grupo Financiero Banorte (GBOOY - Free Report) . GBOOY is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.19, while its industry has an average P/E of 19.44. Over the past year, GBOOY's Forward P/E has been as high as 8.47 and as low as 5.98, with a median of 6.98.
We also note that GBOOY holds a PEG ratio of 0.98. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. GBOOY's industry currently sports an average PEG of 1.03. Over the last 12 months, GBOOY's PEG has been as high as 1.02 and as low as 0.61, with a median of 0.78.
Another valuation metric that we should highlight is GBOOY's P/B ratio of 2.15. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.86. Within the past 52 weeks, GBOOY's P/B has been as high as 2.22 and as low as 1.32, with a median of 1.56.
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. GBOOY has a P/S ratio of 1.48. This compares to its industry's average P/S of 2.25.
Finally, investors will want to recognize that GBOOY has a P/CF ratio of 8.61. 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. GBOOY's current P/CF looks attractive when compared to its industry's average P/CF of 14.02. Within the past 12 months, GBOOY's P/CF has been as high as 8.90 and as low as 4.42, with a median of 6.16.
These are just a handful of the figures considered in Grupo Financiero Banorte'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 GBOOY is an impressive value stock right now.