Are Investors Undervaluing Manulife Financial Corp (MFC) Right Now?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 value investors might notice is Manulife Financial Corp (MFC). MFC is currently sporting a Zacks Rank #2 (Buy) and an A for Value.

Another notable valuation metric for MFC is its P/B ratio of 1.67. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.87. Within the past 52 weeks, MFC's P/B has been as high as 1.75 and as low as 1.43, with a median of 1.62.

Finally, investors should note that MFC has a P/CF ratio of 12.65. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 17.79. Over the past 52 weeks, MFC's P/CF has been as high as 16.32 and as low as 11.85, with a median of 12.92.

Value investors will likely look at more than just these metrics, but the above data helps show that Manulife Financial Corp is likely undervalued currently. And when considering the strength of its earnings outlook, MFC sticks out as one of the market's strongest value stocks.

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This article originally published on Zacks Investment Research (zacks.com).

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