Yahoo Finance Should Value Investors Buy Deutsche Bank (DB) 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.
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 Deutsche Bank (DB). DB is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 5.06, while its industry has an average P/E of 7.34. Over the last 12 months, DB's Forward P/E has been as high as 7.21 and as low as 4.29, with a median of 5.38.
Investors will also notice that DB has a PEG ratio of 0.58. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DB's PEG compares to its industry's average PEG of 0.71. Within the past year, DB's PEG has been as high as 1.01 and as low as 0.48, with a median of 0.68.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DB has a P/S ratio of 0.49. This compares to its industry's average P/S of 1.26.
Value investors will likely look at more than just these metrics, but the above data helps show that Deutsche Bank is likely undervalued currently. And when considering the strength of its earnings outlook, DB sticks out at as one of the market's strongest value stocks.
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Deutsche Bank Aktiengesellschaft (DB) : Free Stock Analysis Report
