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Is BNP Paribas (BNPQY) 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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 6.49, while its industry has an average P/E of 8.50. BNPQY's Forward P/E has been as high as 13.03 and as low as 6.49, with a median of 9.63, all within the past year.

Another valuation metric that we should highlight is BNPQY's P/B ratio of 0.56. 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 solid versus its industry's average P/B of 1.30. BNPQY's P/B has been as high as 877.63 and as low as 0.56, with a median of 0.74, over the past year.

Finally, our model also underscores that BNPQY has a P/CF ratio of 4.92. 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. BNPQY's P/CF compares to its industry's average P/CF of 15.64. Within the past 12 months, BNPQY's P/CF has been as high as 7.73 and as low as 4.92, with a median of 6.71.

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


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