UK Markets open in 6 hrs 42 mins

Is StoneX Group (SNEX) a Great Value Stock Right Now?

  • Oops!
    Something went wrong.
    Please try again later.
·3-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 StoneX Group (SNEX). SNEX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

We should also highlight that SNEX has a P/B ratio of 1.46. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.04. SNEX's P/B has been as high as 1.61 and as low as 1.23, with a median of 1.45, over the past year.

Finally, investors will want to recognize that SNEX has a P/CF ratio of 6.57. 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. SNEX's current P/CF looks attractive when compared to its industry's average P/CF of 13.52. Over the past 52 weeks, SNEX's P/CF has been as high as 7.78 and as low as 4.67, with a median of 6.49.

Another great Financial - Miscellaneous Services stock you could consider is Synchrony Financial (SYF), which is a # 2 (Buy) stock with a Value Score of A.

Synchrony Financial is currently trading with a Forward P/E ratio of 5.19 while its PEG ratio sits at 0.23. Both of the company's metrics compare favorably to its industry's average P/E of 9.65 and average PEG ratio of 0.68.

Over the last 12 months, SYF's P/E has been as high as 9.32, as low as 5.02, with a median of 8.08, and its PEG ratio has been as high as 0.47, as low as 0.22, with a median of 0.35.

Furthermore, Synchrony Financial holds a P/B ratio of 1.18 and its industry's price-to-book ratio is 3.04. SYF's P/B has been as high as 2.28, as low as 1.14, with a median of 1.95 over the past 12 months.

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

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on click here.
Zacks Investment Research

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting