Back to top

Is SunTrust (STI) a Great Value Stock Right Now?

Read MoreHide Full Article

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 stock to keep an eye on is SunTrust (STI - Free Report) . STI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

We also note that STI holds a PEG ratio of 1.10. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. STI's industry currently sports an average PEG of 1.31. Over the past 52 weeks, STI's PEG has been as high as 1.77 and as low as 0.93, with a median of 1.11.

We should also highlight that STI has a P/B ratio of 1.55. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.80. STI's P/B has been as high as 1.56 and as low as 1.12, with a median of 1.42, over the past year.

Finally, investors should note that STI has a P/CF ratio of 10.33. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 16.16. Over the past year, STI's P/CF has been as high as 11.69 and as low as 9.28, with a median of 10.38.

Value investors will likely look at more than just these metrics, but the above data helps show that SunTrust is likely undervalued currently. And when considering the strength of its earnings outlook, STI sticks out at as one of the market's strongest value stocks.

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

SunTrust Banks, Inc. (STI) - free report >>

More from Zacks Tale of the Tape

You May Like