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Here's Why UBS (UBS) is a Strong Value Stock

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

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UBS (UBS)

Headquartered in Zurich, Switzerland, UBS Group AG is the holding company of UBS Group. In 2014, management established UBS Group AG, in line with several measures taken to significantly improve the resolvability of UBS Group in response to heightened issues surrounding “too-big-to-fail” regulatory requirements. The business strategy is centered on pre-eminent global wealth management businesses and universal bank in Switzerland along with global asset management business and investment bank. UBS AG is a bank and the core operating company of the UBS Group. The operational structure of the Group comprises of the following:

UBS sits at a Zacks Rank #3 (Hold), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Banks - Foreign industry's P/E of 8.4X, shares of UBS are trading at a forward P/E of 7X. UBS also has a PEG Ratio of 0.9, a Price/Cash Flow ratio of 5.7X, and a Price/Sales ratio of 1.3X.

Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2022. The Zacks Consensus Estimate has increased $0.06 to $2.24 per share. UBS has an average earnings surprise of 35.6%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding UBS to their portfolios.


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