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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Raymond James (RJF - Free Report) is a stock many investors are watching right now. RJF is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
Investors should also note that RJF holds a PEG ratio of 0.66. 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. RJF's PEG compares to its industry's average PEG of 0.81. Over the last 12 months, RJF's PEG has been as high as 0.84 and as low as 0.54, with a median of 0.66.
Investors should also recognize that RJF has a P/B ratio of 1.98. 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. RJF's current P/B looks attractive when compared to its industry's average P/B of 1.99. Over the past year, RJF's P/B has been as high as 2.45 and as low as 1.58, with a median of 1.99.
Finally, our model also underscores that RJF has a P/CF ratio of 11.10. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 20. Over the past year, RJF's P/CF has been as high as 18.61 and as low as 9.47, with a median of 12.05.
These are just a handful of the figures considered in Raymond James's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that RJF is an impressive value stock right now.