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Are Investors Undervaluing Grupo Financiero Galicia (GGAL) 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.

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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is Grupo Financiero Galicia (GGAL - Free Report) . GGAL is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.

GGAL is also sporting a PEG ratio of 0.59. 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. GGAL's industry has an average PEG of 1.53 right now. Within the past year, GGAL's PEG has been as high as 0.67 and as low as 0.44, with a median of 0.60.

Another notable valuation metric for GGAL is its P/B ratio of 0.47. 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. This company's current P/B looks solid when compared to its industry's average P/B of 1.38. Over the past year, GGAL's P/B has been as high as 3.17 and as low as 0.35, with a median of 1.01.

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


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