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Should Value Investors Buy Erste Group (EBKDY) Stock?
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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Erste Group (EBKDY - Free Report) . EBKDY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.15. This compares to its industry's average Forward P/E of 9.78. Over the past year, EBKDY's Forward P/E has been as high as 12.30 and as low as 8.09, with a median of 10.13.
We also note that EBKDY holds a PEG ratio of 0.99. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. EBKDY's PEG compares to its industry's average PEG of 1.31. Over the past 52 weeks, EBKDY's PEG has been as high as 1.31 and as low as 0.88, with a median of 1.17.
We should also highlight that EBKDY has a P/B ratio of 0.76. 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. EBKDY's current P/B looks attractive when compared to its industry's average P/B of 1.27. Within the past 52 weeks, EBKDY's P/B has been as high as 1.05 and as low as 0.63, with a median of 0.82.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. EBKDY has a P/S ratio of 1.72. This compares to its industry's average P/S of 1.82.
Finally, investors will want to recognize that EBKDY has a P/CF ratio of 6.36. 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. EBKDY's current P/CF looks attractive when compared to its industry's average P/CF of 12.97. Within the past 12 months, EBKDY's P/CF has been as high as 10.17 and as low as 5.29, with a median of 7.15.
Value investors will likely look at more than just these metrics, but the above data helps show that Erste Group is likely undervalued currently. And when considering the strength of its earnings outlook, EBKDY sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Erste Group (EBKDY) Stock?
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Erste Group (EBKDY - Free Report) . EBKDY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.15. This compares to its industry's average Forward P/E of 9.78. Over the past year, EBKDY's Forward P/E has been as high as 12.30 and as low as 8.09, with a median of 10.13.
We also note that EBKDY holds a PEG ratio of 0.99. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. EBKDY's PEG compares to its industry's average PEG of 1.31. Over the past 52 weeks, EBKDY's PEG has been as high as 1.31 and as low as 0.88, with a median of 1.17.
We should also highlight that EBKDY has a P/B ratio of 0.76. 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. EBKDY's current P/B looks attractive when compared to its industry's average P/B of 1.27. Within the past 52 weeks, EBKDY's P/B has been as high as 1.05 and as low as 0.63, with a median of 0.82.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. EBKDY has a P/S ratio of 1.72. This compares to its industry's average P/S of 1.82.
Finally, investors will want to recognize that EBKDY has a P/CF ratio of 6.36. 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. EBKDY's current P/CF looks attractive when compared to its industry's average P/CF of 12.97. Within the past 12 months, EBKDY's P/CF has been as high as 10.17 and as low as 5.29, with a median of 7.15.
Value investors will likely look at more than just these metrics, but the above data helps show that Erste Group is likely undervalued currently. And when considering the strength of its earnings outlook, EBKDY sticks out at as one of the market's strongest value stocks.