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.
One company value investors might notice is BanColombia (CIB). CIB is currently sporting a Zacks Rank #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 7.32. This compares to its industry's average Forward P/E of 10.52. Over the past 52 weeks, CIB's Forward P/E has been as high as 7.66 and as low as 5.05, with a median of 6.53.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CIB has a P/S ratio of 1.25. This compares to its industry's average P/S of 1.84.
Finally, investors should note that CIB has a P/CF ratio of 11.57. 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. This stock's P/CF looks attractive against its industry's average P/CF of 17.63. Within the past 12 months, CIB's P/CF has been as high as 11.97 and as low as 3.94, with a median of 7.05.
NatWest Group (NWG) may be another strong Banks - Foreign stock to add to your shortlist. NWG is a Zacks Rank of #2 (Buy) stock with a Value grade of A.
NatWest Group is currently trading with a Forward P/E ratio of 8.37 while its PEG ratio sits at 0.77. Both of the company's metrics compare favorably to its industry's average P/E of 10.52 and average PEG ratio of 0.76.
NWG's Forward P/E has been as high as 9.78 and as low as 6.88, with a median of 8.20. During the same time period, its PEG ratio has been as high as 2.26, as low as 0.68, with a median of 0.80.
NatWest Group also has a P/B ratio of 1.06 compared to its industry's price-to-book ratio of 2.27. Over the past year, its P/B ratio has been as high as 1.11, as low as 0.73, with a median of 0.94.
These are just a handful of the figures considered in BanColombia and NatWest Group'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 CIB and NWG is an impressive value stock right now.
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BanColombia S.A. (CIB): Free Stock Analysis Report NatWest Group plc (NWG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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