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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 value investors might notice is Manulife Financial Corp (MFC). MFC is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.
Investors should also recognize that MFC has a P/B ratio of 1.67. 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. MFC's current P/B looks attractive when compared to its industry's average P/B of 1.99. MFC's P/B has been as high as 1.75 and as low as 1.43, with a median of 1.62, over the past year.
Finally, our model also underscores that MFC has a P/CF ratio of 12.65. 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. MFC's P/CF compares to its industry's average P/CF of 18.49. Within the past 12 months, MFC's P/CF has been as high as 16.32 and as low as 11.85, with a median of 12.92.
These are only a few of the key metrics included in Manulife Financial Corp's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, MFC looks like an impressive value stock at the moment.
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Manulife Financial Corp (MFC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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