Is Raymond James Financial (RJF) a Great Value Stock 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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Raymond James Financial (RJF). RJF is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 11.39 right now. For comparison, its industry sports an average P/E of 12.39. Over the past year, RJF's Forward P/E has been as high as 15.38 and as low as 9.49, with a median of 13.78.

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. RJF has a P/S ratio of 2.1. This compares to its industry's average P/S of 2.14.

Finally, investors will want to recognize that RJF has a P/CF ratio of 13.76. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 16.07. Over the past year, RJF's P/CF has been as high as 15.20 and as low as 10.91, with a median of 13.36.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Raymond James Financial is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RJF feels like a great value stock at the moment.

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