We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
USB vs. BNY: Which Stock Should Value Investors Buy Now?
Read MoreHide Full Article
Investors with an interest in Banks - Major Regional stocks have likely encountered both U.S. Bancorp (USB - Free Report) and BNY (BNY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
U.S. Bancorp and BNY are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that USB's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
USB currently has a forward P/E ratio of 12.05, while BNY has a forward P/E of 17.57. We also note that USB has a PEG ratio of 1.12. 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. BNY currently has a PEG ratio of 1.22.
Another notable valuation metric for USB is its P/B ratio of 1.6. 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. For comparison, BNY has a P/B of 2.72.
Based on these metrics and many more, USB holds a Value grade of B, while BNY has a Value grade of F.
USB sticks out from BNY in both our Zacks Rank and Style Scores models, so value investors will likely feel that USB is the better option right now.
View the Zacks #1 Rank List
Image: Bigstock
USB vs. BNY: Which Stock Should Value Investors Buy Now?
Investors with an interest in Banks - Major Regional stocks have likely encountered both U.S. Bancorp (USB - Free Report) and BNY (BNY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
U.S. Bancorp and BNY are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that USB's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
USB currently has a forward P/E ratio of 12.05, while BNY has a forward P/E of 17.57. We also note that USB has a PEG ratio of 1.12. 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. BNY currently has a PEG ratio of 1.22.
Another notable valuation metric for USB is its P/B ratio of 1.6. 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. For comparison, BNY has a P/B of 2.72.
Based on these metrics and many more, USB holds a Value grade of B, while BNY has a Value grade of F.
USB sticks out from BNY in both our Zacks Rank and Style Scores models, so value investors will likely feel that USB is the better option right now.