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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 to watch right now is Intercorp Financial Services (IFS). IFS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 7.98 right now. For comparison, its industry sports an average P/E of 18.98. Over the past 52 weeks, IFS's Forward P/E has been as high as 10.57 and as low as 5.61, with a median of 6.81.
Another valuation metric that we should highlight is IFS's P/B ratio of 1.40. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. IFS's current P/B looks attractive when compared to its industry's average P/B of 3.64. Within the past 52 weeks, IFS's P/B has been as high as 1.40 and as low as 0.91, with a median of 1.14.
Finally, investors will want to recognize that IFS has a P/CF ratio of 7.53. 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. IFS's current P/CF looks attractive when compared to its industry's average P/CF of 15.64. Within the past 12 months, IFS's P/CF has been as high as 8.71 and as low as 6.22, with a median of 7.69.
These are just a handful of the figures considered in Intercorp Financial Services'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 IFS is an impressive value stock right now.
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Intercorp Financial Services Inc. (IFS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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