Back to top

Image: Bigstock

Is Bancolombia (CIB) Stock Undervalued Right Now?

Read MoreHide Full Article

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.

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.

One company to watch right now is Bancolombia (CIB - Free Report) . CIB is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

CIB is also sporting a PEG ratio of 0.80. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CIB's industry has an average PEG of 1.40 right now. CIB's PEG has been as high as 1.13 and as low as 0.59, with a median of 0.77, all within the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. CIB has a P/S ratio of 1.75. This compares to its industry's average P/S of 1.88.

Finally, our model also underscores that CIB has a P/CF ratio of 11.57. 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. CIB's P/CF compares to its industry's average P/CF of 16.65. Over the past 52 weeks, CIB's P/CF has been as high as 15.38 and as low as 9.13, with a median of 12.27.

These are only a few of the key metrics included in Bancolombia's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CIB looks like an impressive value stock at the moment.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


BanColombia S.A. (CIB) - free report >>

Published in