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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Popular (BPOP - Free Report) . BPOP is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 7.74. This compares to its industry's average Forward P/E of 10.48. Over the past year, BPOP's Forward P/E has been as high as 10.33 and as low as 7.63, with a median of 9.19.
Another notable valuation metric for BPOP is its P/B ratio of 0.94. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.52. Within the past 52 weeks, BPOP's P/B has been as high as 1.11 and as low as 0.88, with a median of 0.99.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BPOP has a P/S ratio of 1.86. This compares to its industry's average P/S of 2.88.
Finally, investors should note that BPOP has a P/CF ratio of 8.13. 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. BPOP's current P/CF looks attractive when compared to its industry's average P/CF of 10.90. Over the past 52 weeks, BPOP's P/CF has been as high as 34.13 and as low as 7.96, with a median of 12.04.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Popular is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BPOP feels like a great value stock at the moment.
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Is Popular (BPOP) a Great Value Stock 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Popular (BPOP - Free Report) . BPOP is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 7.74. This compares to its industry's average Forward P/E of 10.48. Over the past year, BPOP's Forward P/E has been as high as 10.33 and as low as 7.63, with a median of 9.19.
Another notable valuation metric for BPOP is its P/B ratio of 0.94. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.52. Within the past 52 weeks, BPOP's P/B has been as high as 1.11 and as low as 0.88, with a median of 0.99.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BPOP has a P/S ratio of 1.86. This compares to its industry's average P/S of 2.88.
Finally, investors should note that BPOP has a P/CF ratio of 8.13. 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. BPOP's current P/CF looks attractive when compared to its industry's average P/CF of 10.90. Over the past 52 weeks, BPOP's P/CF has been as high as 34.13 and as low as 7.96, with a median of 12.04.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Popular is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BPOP feels like a great value stock at the moment.