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Are Investors Undervaluing Barclays (BCS) Right Now?
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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 value investors might notice is Barclays (BCS - Free Report) . BCS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.88. This compares to its industry's average Forward P/E of 9.52. BCS's Forward P/E has been as high as 13.43 and as low as 6.71, with a median of 8.94, all within the past year.
Investors should also recognize that BCS has a P/B ratio of 0.43. The P/B is a method of comparing a stock's market value to 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 1.25. BCS's P/B has been as high as 0.62 and as low as 0.41, with a median of 0.52, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BCS has a P/S ratio of 1.3. This compares to its industry's average P/S of 1.62.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Barclays is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BCS feels like a great value stock at the moment.
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Are Investors Undervaluing Barclays (BCS) Right Now?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 value investors might notice is Barclays (BCS - Free Report) . BCS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.88. This compares to its industry's average Forward P/E of 9.52. BCS's Forward P/E has been as high as 13.43 and as low as 6.71, with a median of 8.94, all within the past year.
Investors should also recognize that BCS has a P/B ratio of 0.43. The P/B is a method of comparing a stock's market value to 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 1.25. BCS's P/B has been as high as 0.62 and as low as 0.41, with a median of 0.52, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BCS has a P/S ratio of 1.3. This compares to its industry's average P/S of 1.62.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Barclays is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BCS feels like a great value stock at the moment.