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Is Societe Generale (SCGLY) Stock Undervalued 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.

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.

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 to watch right now is Societe Generale (SCGLY - Free Report) . SCGLY 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 7.09, which compares to its industry's average of 8.70. Over the past 52 weeks, SCGLY's Forward P/E has been as high as 12.42 and as low as 7.07, with a median of 9.

We should also highlight that SCGLY has a P/B ratio of 0.45. 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 stock's P/B looks attractive against its industry's average P/B of 1.33. Within the past 52 weeks, SCGLY's P/B has been as high as 0.65 and as low as 0.43, with a median of 0.54.

Finally, our model also underscores that SCGLY has a P/CF ratio of 6.95. 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. SCGLY's P/CF compares to its industry's average P/CF of 16.08. Within the past 12 months, SCGLY's P/CF has been as high as 14.82 and as low as 5.51, with a median of 7.48.

These are just a handful of the figures considered in Societe Generale'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 SCGLY is an impressive value stock right now.




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