UK Markets open in 6 hrs 56 mins

Should Value Investors Buy NatWest Group (NWG) Stock?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

NatWest Group (NWG) is a stock many investors are watching right now. NWG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 6.10, while its industry has an average P/E of 7.36. Over the last 12 months, NWG's Forward P/E has been as high as 13.38 and as low as 5.66, with a median of 8.34.

Investors will also notice that NWG has a PEG ratio of 0.23. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NWG's PEG compares to its industry's average PEG of 0.44. Over the past 52 weeks, NWG's PEG has been as high as 0.83 and as low as 0.22, with a median of 0.69.

Investors should also recognize that NWG has a P/B ratio of 0.60. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. NWG's current P/B looks attractive when compared to its industry's average P/B of 1.32. NWG's P/B has been as high as 0.70 and as low as 0.50, with a median of 0.59, over the past year.

These are only a few of the key metrics included in NatWest Group'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, NWG looks like an impressive 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
 
NatWest Group plc (NWG) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research