While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 Synovus Financial (SNV). SNV is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.02. This compares to its industry's average Forward P/E of 9.51. Over the last 12 months, SNV's Forward P/E has been as high as 12.70 and as low as 7.68, with a median of 9.95.
Investors will also notice that SNV has a PEG ratio of 0.80. 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. SNV's PEG compares to its industry's average PEG of 1.27. SNV's PEG has been as high as 5.20 and as low as 0.77, with a median of 1.98, all within the past year.
Investors should also recognize that SNV has a P/B ratio of 1.16. 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 stock's P/B looks solid versus its industry's average P/B of 1.63. Over the past 12 months, SNV's P/B has been as high as 1.75 and as low as 1.10, with a median of 1.42.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SNV has a P/S ratio of 1.72. This compares to its industry's average P/S of 1.83.
Finally, we should also recognize that SNV has a P/CF ratio of 9.28. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.28. Over the past year, SNV's P/CF has been as high as 19.23 and as low as 8.85, with a median of 14.60.
These are just a handful of the figures considered in Synovus 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 SNV is an impressive value stock right now.
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Synovus Financial Corp. (SNV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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