Yahoo Finance Should Value Investors Buy Banco Do Brasil (BDORY) Stock?
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Banco Do Brasil (BDORY). BDORY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 3.03, while its industry has an average P/E of 7.76. BDORY's Forward P/E has been as high as 5.16 and as low as 1.86, with a median of 3.44, all within the past year.
BDORY is also sporting a PEG ratio of 0.30. 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. BDORY's industry has an average PEG of 0.76 right now. Within the past year, BDORY's PEG has been as high as 0.49 and as low as 0.10, with a median of 0.21.
Investors should also recognize that BDORY has a P/B ratio of 0.68. The P/B is a method of comparing a stock's market value to 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 1.44. Over the past year, BDORY's P/B has been as high as 0.79 and as low as 0.54, with a median of 0.67.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BDORY has a P/S ratio of 0.54. This compares to its industry's average P/S of 1.36.
Finally, our model also underscores that BDORY has a P/CF ratio of 3.54. 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. BDORY's P/CF compares to its industry's average P/CF of 13.05. BDORY's P/CF has been as high as 5.05 and as low as 2.80, with a median of 3.71, all within the past year.
Investors could also keep in mind BNP Paribas (BNPQY), an Banks - Foreign stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of BNP Paribas currently holds a Forward P/E ratio of 6.91, and its PEG ratio is 0.51. In comparison, its industry sports average P/E and PEG ratios of 7.76 and 0.76.
BNPQY's price-to-earnings ratio has been as high as 8.49 and as low as 5.25, with a median of 6.91, while its PEG ratio has been as high as 0.82 and as low as 0.46, with a median of 0.57, all within the past year.
BNP Paribas sports a P/B ratio of 0.58 as well; this compares to its industry's price-to-book ratio of 1.44. In the past 52 weeks, BNPQY's P/B has been as high as 0.69, as low as 0.40, with a median of 0.49.
These are only a few of the key metrics included in Banco Do Brasil and BNP Paribas strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BDORY and BNPQY look like an impressive value stock at the moment.
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Banco Do Brasil SA (BDORY) : Free Stock Analysis Report
BNP Paribas SA (BNPQY) : Free Stock Analysis Report
