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Is PennyMac Financial (PFSI) a Great Value Stock Right Now?
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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.
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
PennyMac Financial (PFSI - Free Report) is a stock many investors are watching right now. PFSI is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 6.84, which compares to its industry's average of 8.38. Over the past year, PFSI's Forward P/E has been as high as 8.26 and as low as 6.23, with a median of 7.48.
Investors will also notice that PFSI has a PEG ratio of 0.62. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PFSI's PEG compares to its industry's average PEG of 1. PFSI's PEG has been as high as 0.83 and as low as 0.62, with a median of 0.75, all within the past year.
Another valuation metric that we should highlight is PFSI's P/B ratio of 1.54. 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 2.15. Over the past year, PFSI's P/B has been as high as 1.60 and as low as 0.95, with a median of 1.27.
Finally, our model also underscores that PFSI has a P/CF ratio of 3.28. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. PFSI's current P/CF looks attractive when compared to its industry's average P/CF of 11.24. Over the past year, PFSI's P/CF has been as high as 4.47 and as low as 2.90, with a median of 3.37.
These are just a handful of the figures considered in PennyMac Financial'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 PFSI is an impressive value stock right now.
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Is PennyMac Financial (PFSI) a Great Value Stock Right Now?
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.
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
PennyMac Financial (PFSI - Free Report) is a stock many investors are watching right now. PFSI is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 6.84, which compares to its industry's average of 8.38. Over the past year, PFSI's Forward P/E has been as high as 8.26 and as low as 6.23, with a median of 7.48.
Investors will also notice that PFSI has a PEG ratio of 0.62. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PFSI's PEG compares to its industry's average PEG of 1. PFSI's PEG has been as high as 0.83 and as low as 0.62, with a median of 0.75, all within the past year.
Another valuation metric that we should highlight is PFSI's P/B ratio of 1.54. 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 2.15. Over the past year, PFSI's P/B has been as high as 1.60 and as low as 0.95, with a median of 1.27.
Finally, our model also underscores that PFSI has a P/CF ratio of 3.28. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. PFSI's current P/CF looks attractive when compared to its industry's average P/CF of 11.24. Over the past year, PFSI's P/CF has been as high as 4.47 and as low as 2.90, with a median of 3.37.
These are just a handful of the figures considered in PennyMac Financial'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 PFSI is an impressive value stock right now.