Yahoo Finance Is PennyMac Financial Services (PFSI) a Great Value Stock Right Now?
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 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.
PennyMac Financial Services (PFSI) is a stock many investors are watching right now. PFSI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 7.54. This compares to its industry's average Forward P/E of 9.15. PFSI's Forward P/E has been as high as 8.25 and as low as 3.47, with a median of 5.24, all within the past year.
We should also highlight that PFSI has a P/B ratio of 0.84. 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 1.44. PFSI's P/B has been as high as 1.22 and as low as 0.63, with a median of 0.84, over the past year.
Finally, we should also recognize that PFSI has a P/CF ratio of 4.64. 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. PFSI's current P/CF looks attractive when compared to its industry's average P/CF of 6.50. Within the past 12 months, PFSI's P/CF has been as high as 4.69 and as low as 2.72, with a median of 3.44.
These are only a few of the key metrics included in PennyMac Financial Services'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, PFSI looks like an impressive value stock at the moment.
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PennyMac Financial Services, Inc. (PFSI) : Free Stock Analysis Report
