While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 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 a P/E ratio of 7.40, which compares to its industry's average of 8.81. Over the last 12 months, BNPQY's Forward P/E has been as high as 13.03 and as low as 7.38, with a median of 9.79.
Another valuation metric that we should highlight is BNPQY's P/B ratio of 0.60. The P/B ratio pits a stock's market value against 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 1.35. Over the past year, BNPQY's P/B has been as high as 877.63 and as low as 0.58, with a median of 0.75.
Finally, investors will want to recognize that BNPQY has a P/CF ratio of 5.30. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. BNPQY's P/CF compares to its industry's average P/CF of 16.80. Within the past 12 months, BNPQY's P/CF has been as high as 7.80 and as low as 5.12, with a median of 6.83.
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.