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Is Banco Macro (BMA) a Great Value Stock Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Banco Macro (BMA - Free Report) is a stock many investors are watching right now. BMA is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 6.79. This compares to its industry's average Forward P/E of 9.81. BMA's Forward P/E has been as high as 10.92 and as low as 3.37, with a median of 6.73, all within the past year.

BMA is also sporting a PEG ratio of 0.49. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BMA's PEG compares to its industry's average PEG of 1.09. Over the past 52 weeks, BMA's PEG has been as high as 1.94 and as low as 0.25, with a median of 0.49.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BMA has a P/S ratio of 1.39. This compares to its industry's average P/S of 1.66.

Finally, investors should note that BMA has a P/CF ratio of 5.33. 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. This stock's P/CF looks attractive against its industry's average P/CF of 13.09. Over the past 52 weeks, BMA's P/CF has been as high as 13.73 and as low as 3.50, with a median of 6.87.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Banco Macro is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BMA feels like a great value stock at the moment.




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