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Is Banco Santander-Brazil (BSBR) Stock Undervalued Right Now?

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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 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.

Banco Santander-Brazil (BSBR - Free Report) is a stock many investors are watching right now. BSBR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

We also note that BSBR holds a PEG ratio of 1.17. 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. BSBR's PEG compares to its industry's average PEG of 1.46. Over the past 52 weeks, BSBR's PEG has been as high as 1.28 and as low as 0.76, with a median of 1.04.

Finally, we should also recognize that BSBR has a P/CF ratio of 9.75. 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. BSBR's P/CF compares to its industry's average P/CF of 17.08. Over the past 52 weeks, BSBR's P/CF has been as high as 13.31 and as low as 9.06, with a median of 11.04.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Banco Santander-Brazil is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BSBR feels like a great value stock at the moment.


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