Back to top

Image: Bigstock

Are Investors Undervaluing Franklin Resources (BEN) Right Now?

Read MoreHide Full Article

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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 to watch right now is Franklin Resources (BEN - Free Report) . BEN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Another notable valuation metric for BEN is its P/B ratio of 1.68. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. BEN's current P/B looks attractive when compared to its industry's average P/B of 1.70. Within the past 52 weeks, BEN's P/B has been as high as 1.78 and as low as 1.43, with a median of 1.64.

Finally, our model also underscores that BEN has a P/CF ratio of 10.29. 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. BEN's current P/CF looks attractive when compared to its industry's average P/CF of 12.70. BEN's P/CF has been as high as 21.71 and as low as 8.34, with a median of 10.44, all within the past year.

These are only a few of the key metrics included in Franklin Resources'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, BEN 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:


Franklin Resources, Inc. (BEN) - free report >>

Published in