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.
Are Investors Undervaluing China Construction Bank (CICHY) Right Now?
Read MoreHide Full Article
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is China Construction Bank (CICHY - Free Report) . CICHY is currently sporting a Zacks Rank #2 (Buy) and an A for Value.
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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CICHY has a P/S ratio of 1.83. This compares to its industry's average P/S of 2.03.
If you're looking for another solid Banks - Foreign value stock, take a look at Shinhan Financial Group Co (SHG - Free Report) . SHG is a Zacks Rank of #1 (Strong Buy) stock with a Value score of A.
Shares of Shinhan Financial Group Co are currently trading at a forward earnings multiple of 6.31 and a PEG ratio of 0.51 compared to its industry's P/E and PEG ratios of 10.81 and 0.68, respectively.
SHG's Forward P/E has been as high as 7.09 and as low as 4.11, with a median of 5.60. During the same time period, its PEG ratio has been as high as 0.72, as low as 0.37, with a median of 0.51.
Shinhan Financial Group Co sports a P/B ratio of 0.57 as well; this compares to its industry's price-to-book ratio of 2.67. In the past 52 weeks, SHG's P/B has been as high as 0.59, as low as 0.35, with a median of 0.48.
These figures are just a handful of the metrics value investors tend to look at, but they help show that China Construction Bank and Shinhan Financial Group Co are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CICHY and SHG feels like a great value stock at the moment.
View the Zacks #1 Rank List
Image: Bigstock
Are Investors Undervaluing China Construction Bank (CICHY) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is China Construction Bank (CICHY - Free Report) . CICHY is currently sporting a Zacks Rank #2 (Buy) and an A for Value.
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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CICHY has a P/S ratio of 1.83. This compares to its industry's average P/S of 2.03.
If you're looking for another solid Banks - Foreign value stock, take a look at Shinhan Financial Group Co (SHG - Free Report) . SHG is a Zacks Rank of #1 (Strong Buy) stock with a Value score of A.
Shares of Shinhan Financial Group Co are currently trading at a forward earnings multiple of 6.31 and a PEG ratio of 0.51 compared to its industry's P/E and PEG ratios of 10.81 and 0.68, respectively.
SHG's Forward P/E has been as high as 7.09 and as low as 4.11, with a median of 5.60. During the same time period, its PEG ratio has been as high as 0.72, as low as 0.37, with a median of 0.51.
Shinhan Financial Group Co sports a P/B ratio of 0.57 as well; this compares to its industry's price-to-book ratio of 2.67. In the past 52 weeks, SHG's P/B has been as high as 0.59, as low as 0.35, with a median of 0.48.
These figures are just a handful of the metrics value investors tend to look at, but they help show that China Construction Bank and Shinhan Financial Group Co are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CICHY and SHG feels like a great value stock at the moment.