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Are Investors Undervaluing Intercorp Financial Services (IFS) 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.

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 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 to watch right now is Intercorp Financial Services (IFS - Free Report) . IFS is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 7.68 right now. For comparison, its industry sports an average P/E of 16.28. IFS's Forward P/E has been as high as 10.57 and as low as 6.00, with a median of 7.42, all within the past year.

We should also highlight that IFS has a P/B ratio of 1.46. 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. This stock's P/B looks solid versus its industry's average P/B of 3.12. IFS's P/B has been as high as 1.53 and as low as 1.04, with a median of 1.26, over the past year.

Virtu Financial (VIRT - Free Report) may be another strong Financial - Miscellaneous Services stock to add to your shortlist. VIRT is a Zacks Rank of #2 (Buy) stock with a Value grade of A.

Shares of Virtu Financial are currently trading at a forward earnings multiple of 7.82 and a PEG ratio of 0.45 compared to its industry's P/E and PEG ratios of 16.28 and 1.06, respectively.

Over the past year, VIRT's P/E has been as high as 12.61, as low as 7.74, with a median of 10.53; its PEG ratio has been as high as 1.53, as low as 0.40, with a median of 0.56 during the same time period.

Additionally, Virtu Financial has a P/B ratio of 3.32 while its industry's price-to-book ratio sits at 3.12. For VIRT, this valuation metric has been as high as 4.39, as low as 3.24, with a median of 3.90 over the past year.

These are only a few of the key metrics included in Intercorp Financial Services and Virtu Financial strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, IFS and VIRT look like an impressive value stock at the moment.

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