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Are Investors Undervaluing Synchrony Financial (SYF) Right Now?
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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.
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Synchrony Financial (SYF - Free Report) . SYF is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.65, while its industry has an average P/E of 13.06. Over the past year, SYF's Forward P/E has been as high as 10.68 and as low as 5.52, with a median of 8.41.
SYF is also sporting a PEG ratio of 0.72. 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. SYF's PEG compares to its industry's average PEG of 0.85. Within the past year, SYF's PEG has been as high as 1.31 and as low as 0.48, with a median of 0.70.
Another valuation metric that we should highlight is SYF's P/B ratio of 1.81. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.94. Over the past year, SYF's P/B has been as high as 1.82 and as low as 1.09, with a median of 1.62.
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. SYF has a P/S ratio of 1.01. This compares to its industry's average P/S of 2.07.
These are just a handful of the figures considered in Synchrony Financial'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 SYF is an impressive value stock right now.
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Are Investors Undervaluing Synchrony Financial (SYF) 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.
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Synchrony Financial (SYF - Free Report) . SYF is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.65, while its industry has an average P/E of 13.06. Over the past year, SYF's Forward P/E has been as high as 10.68 and as low as 5.52, with a median of 8.41.
SYF is also sporting a PEG ratio of 0.72. 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. SYF's PEG compares to its industry's average PEG of 0.85. Within the past year, SYF's PEG has been as high as 1.31 and as low as 0.48, with a median of 0.70.
Another valuation metric that we should highlight is SYF's P/B ratio of 1.81. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.94. Over the past year, SYF's P/B has been as high as 1.82 and as low as 1.09, with a median of 1.62.
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. SYF has a P/S ratio of 1.01. This compares to its industry's average P/S of 2.07.
These are just a handful of the figures considered in Synchrony Financial'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 SYF is an impressive value stock right now.