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Should Value Investors Buy BNP Paribas (BNPQY) Stock?

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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 company value investors might notice is BNP Paribas (BNPQY - Free Report) . BNPQY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 7.45 right now. For comparison, its industry sports an average P/E of 8.51. Over the last 12 months, BNPQY's Forward P/E has been as high as 13.03 and as low as 7.40, with a median of 9.92.

Another valuation metric that we should highlight is BNPQY's P/B ratio of 0.61. 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 1.33. BNPQY's P/B has been as high as 877.63 and as low as 0.58, with a median of 0.75, over the past year.

Finally, our model also underscores that BNPQY has a P/CF ratio of 5.51. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. BNPQY's P/CF compares to its industry's average P/CF of 17.25. Over the past year, BNPQY's P/CF has been as high as 7.84 and as low as 5.30, with a median of 6.91.

These are just a handful of the figures considered in BNP Paribas'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 BNPQY is an impressive value stock right now.


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