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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Shinhan Financial Group Co (SHG). SHG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 4.89, while its industry has an average P/E of 9.16. Over the past 52 weeks, SHG's Forward P/E has been as high as 6.79 and as low as 4.11, with a median of 5.27.
SHG is also sporting a PEG ratio of 0.44. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SHG's industry has an average PEG of 0.73 right now. SHG's PEG has been as high as 0.74 and as low as 0.37, with a median of 0.56, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SHG has a P/S ratio of 0.69. This compares to its industry's average P/S of 1.38.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Shinhan Financial Group Co is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SHG feels like a great value stock at the moment.
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Shinhan Financial Group Co Ltd (SHG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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