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Is BanColombia (CIB) a Great Value Stock Right Now?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

BanColombia (CIB) is a stock many investors are watching right now. CIB is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.27, which compares to its industry's average of 8.24. CIB's Forward P/E has been as high as 12.80 and as low as 6.27, with a median of 8.68, all within the past year.

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Investors should also note that CIB holds a PEG ratio of 0.38. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CIB's industry has an average PEG of 0.49 right now. Within the past year, CIB's PEG has been as high as 0.63 and as low as 0.38, with a median of 0.50.

Investors should also recognize that CIB has a P/B ratio of 0.92. 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 1.55. CIB's P/B has been as high as 1.10 and as low as 0.72, with a median of 0.84, over 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. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CIB has a P/S ratio of 1.38. This compares to its industry's average P/S of 1.62.

Finally, investors will want to recognize that CIB has a P/CF ratio of 5.38. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.78. Over the past year, CIB's P/CF has been as high as 21.20 and as low as 5.36, with a median of 9.45.

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


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