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Should Value Investors Buy Grupo Financiero Galicia (GGAL) Stock?

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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.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Grupo Financiero Galicia (GGAL - Free Report) . GGAL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Investors will also notice that GGAL has a PEG ratio of 0.59. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. GGAL's PEG compares to its industry's average PEG of 1.54. GGAL's PEG has been as high as 0.67 and as low as 0.38, with a median of 0.50, all within the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. GGAL has a P/S ratio of 0.34. This compares to its industry's average P/S of 0.99.

Value investors will likely look at more than just these metrics, but the above data helps show that Grupo Financiero Galicia is likely undervalued currently. And when considering the strength of its earnings outlook, GGAL sticks out at as one of the market's strongest value stocks.


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