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Should Value Investors Buy PennyMac Financial (PFSI) 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.
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 holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 3.19 right now. For comparison, its industry sports an average P/E of 8.30. Over the past 52 weeks, PFSI's Forward P/E has been as high as 8.26 and as low as 2.27, with a median of 7.33.
We also note that PFSI holds a PEG ratio of 0.62. 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. PFSI's industry has an average PEG of 0.99 right now. Over the past 52 weeks, PFSI's PEG has been as high as 0.83 and as low as 0.62, with a median of 0.74.
Investors should also recognize that PFSI has a P/B ratio of 1.12. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. PFSI's current P/B looks attractive 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 1.48 and as low as 0.64, with a median of 1.27.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PFSI has a P/S ratio of 1.15. This compares to its industry's average P/S of 1.18.
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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Should Value Investors Buy PennyMac Financial (PFSI) Stock?
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.
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 holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 3.19 right now. For comparison, its industry sports an average P/E of 8.30. Over the past 52 weeks, PFSI's Forward P/E has been as high as 8.26 and as low as 2.27, with a median of 7.33.
We also note that PFSI holds a PEG ratio of 0.62. 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. PFSI's industry has an average PEG of 0.99 right now. Over the past 52 weeks, PFSI's PEG has been as high as 0.83 and as low as 0.62, with a median of 0.74.
Investors should also recognize that PFSI has a P/B ratio of 1.12. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. PFSI's current P/B looks attractive 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 1.48 and as low as 0.64, with a median of 1.27.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PFSI has a P/S ratio of 1.15. This compares to its industry's average P/S of 1.18.
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.