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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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.
BNP Paribas (BNPQY) is a stock many investors are watching right now. BNPQY 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 6.69, while its industry has an average P/E of 7.95. Over the last 12 months, BNPQY's Forward P/E has been as high as 9.88 and as low as 5.75, with a median of 8.29.
Investors should also recognize that BNPQY has a P/B ratio of 0.45. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.26. Over the past year, BNPQY's P/B has been as high as 0.65 and as low as 0.42, with a median of 0.55.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BNPQY has a P/S ratio of 1.13. This compares to its industry's average P/S of 1.39.
Finally, investors should note that BNPQY has a P/CF ratio of 3.93. 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 stock's P/CF looks attractive against its industry's average P/CF of 11.96. BNPQY's P/CF has been as high as 5.51 and as low as 3.43, with a median of 4.55, all within the past year.
These are only a few of the key metrics included in BNP Paribas's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BNPQY looks like an impressive value stock at the moment.
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