Is Barclays (BCS) Stock Undervalued Right Now?
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Barclays (BCS). BCS 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 5.34, which compares to its industry's average of 8.18. Over the last 12 months, BCS's Forward P/E has been as high as 7.65 and as low as 3.93, with a median of 5.23.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BCS has a P/S ratio of 1.21. This compares to its industry's average P/S of 1.39.
If you're looking for another solid Banks - Foreign value stock, take a look at Deutsche Bank (DB). DB is a # 2 (Buy) stock with a Value score of A.
Deutsche Bank is trading at a forward earnings multiple of 6.69 at the moment, with a PEG ratio of 0.75. This compares to its industry's average P/E of 8.18 and average PEG ratio of 0.79.
Over the last 12 months, DB's P/E has been as high as 9.70, as low as 4.29, with a median of 5.87, and its PEG ratio has been as high as 1.04, as low as 0.12, with a median of 0.64.
Additionally, Deutsche Bank has a P/B ratio of 0.36 while its industry's price-to-book ratio sits at 1.59. For DB, this valuation metric has been as high as 0.42, as low as 0.21, with a median of 0.28 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Barclays and Deutsche Bank are likely undervalued currently. And when considering the strength of its earnings outlook, BCS and DB sticks out as one of the market's strongest value stocks.
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Barclays PLC (BCS) : Free Stock Analysis Report
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