Is CI Financial (CIXX) a Great Value Stock Right Now?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 stock to keep an eye on is CI Financial (CIXX). CIXX is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 4.56. This compares to its industry's average Forward P/E of 10.81. CIXX's Forward P/E has been as high as 8.61 and as low as 3.38, with a median of 4.40, all within the past year.
Investors will also notice that CIXX has a PEG ratio of 0.57. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CIXX's PEG compares to its industry's average PEG of 0.93. Over the past 52 weeks, CIXX's PEG has been as high as 1.08 and as low as 0.42, with a median of 0.55.
We should also highlight that CIXX has a P/B ratio of 1.50. 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 2.99. Within the past 52 weeks, CIXX's P/B has been as high as 3.30 and as low as 1.29, with a median of 1.65.
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. CIXX has a P/S ratio of 0.98. This compares to its industry's average P/S of 1.92.
Finally, investors will want to recognize that CIXX has a P/CF ratio of 4.89. 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. This stock's P/CF looks attractive against its industry's average P/CF of 14.96. Within the past 12 months, CIXX's P/CF has been as high as 10.50 and as low as 3.73, with a median of 5.03.
Another great Financial - Miscellaneous Services stock you could consider is Intercorp Financial Services (IFS), which is a # 2 (Buy) stock with a Value Score of A.
Intercorp Financial Services is currently trading with a Forward P/E ratio of 7.18 while its PEG ratio sits at 0.58. Both of the company's metrics compare favorably to its industry's average P/E of 10.81 and average PEG ratio of 0.93.
Over the past year, IFS's P/E has been as high as 9.34, as low as 5.33, with a median of 6.36; its PEG ratio has been as high as 0.63, as low as 0.39, with a median of 0.55 during the same time period.
Furthermore, Intercorp Financial Services holds a P/B ratio of 1.18 and its industry's price-to-book ratio is 2.99. IFS's P/B has been as high as 1.77, as low as 0.95, with a median of 1.19 over the past 12 months.
These are only a few of the key metrics included in CI Financial and Intercorp Financial Services strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CIXX and IFS look 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
CI Financial Corp. (CIXX) : Free Stock Analysis Report
Intercorp Financial Services Inc. (IFS) : Free Stock Analysis Report
