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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, 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is Popular (BPOP - Free Report) . BPOP is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.
BPOP is also sporting a PEG ratio of 0.61. 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. BPOP's PEG compares to its industry's average PEG of 0.89. Within the past year, BPOP's PEG has been as high as 0.92 and as low as 0.50, with a median of 0.60.
We should also highlight that BPOP has a P/B ratio of 1.48. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. BPOP's current P/B looks attractive when compared to its industry's average P/B of 1.76. Over the past year, BPOP's P/B has been as high as 1.48 and as low as 0.98, with a median of 1.25.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BPOP has a P/S ratio of 2.19. This compares to its industry's average P/S of 2.32.
Finally, our model also underscores that BPOP has a P/CF ratio of 16.96. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 17.53. Over the past year, BPOP's P/CF has been as high as 19.54 and as low as 11.90, with a median of 16.06.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Popular is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BPOP feels like a great value stock at the moment.
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Should Value Investors Buy Popular (BPOP) Stock?
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, 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is Popular (BPOP - Free Report) . BPOP is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.
BPOP is also sporting a PEG ratio of 0.61. 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. BPOP's PEG compares to its industry's average PEG of 0.89. Within the past year, BPOP's PEG has been as high as 0.92 and as low as 0.50, with a median of 0.60.
We should also highlight that BPOP has a P/B ratio of 1.48. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. BPOP's current P/B looks attractive when compared to its industry's average P/B of 1.76. Over the past year, BPOP's P/B has been as high as 1.48 and as low as 0.98, with a median of 1.25.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BPOP has a P/S ratio of 2.19. This compares to its industry's average P/S of 2.32.
Finally, our model also underscores that BPOP has a P/CF ratio of 16.96. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 17.53. Over the past year, BPOP's P/CF has been as high as 19.54 and as low as 11.90, with a median of 16.06.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Popular is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BPOP feels like a great value stock at the moment.