Is Raymond James Financial (RJF) Stock Undervalued Right Now?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 stock to keep an eye on is Raymond James Financial (RJF). RJF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 11.21 right now. For comparison, its industry sports an average P/E of 12.01. Over the past 52 weeks, RJF's Forward P/E has been as high as 15.38 and as low as 9.49, with a median of 13.61.

We should also highlight that RJF has a P/B ratio of 2.35. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.47. Within the past 52 weeks, RJF's P/B has been as high as 2.77 and as low as 1.94, with a median of 2.42.

Finally, we should also recognize that RJF has a P/CF ratio of 13.52. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. RJF's P/CF compares to its industry's average P/CF of 15.63. RJF's P/CF has been as high as 15.20 and as low as 10.91, with a median of 13.36, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Raymond James Financial is likely undervalued currently. And when considering the strength of its earnings outlook, RJF sticks out at as one of the market's strongest value stocks.

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