Is DNB Bank ASA (DNBBY) a Great Value Stock Right Now?
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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 to watch right now is DNB Bank ASA (DNBBY). DNBBY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
We should also highlight that DNBBY has a P/B ratio of 1.17. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.46. Within the past 52 weeks, DNBBY's P/B has been as high as 1.27 and as low as 0.96, with a median of 1.10.
Finally, investors should note that DNBBY has a P/CF ratio of 8.38. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. DNBBY's current P/CF looks attractive when compared to its industry's average P/CF of 12.81. Over the past 52 weeks, DNBBY's P/CF has been as high as 10.17 and as low as 7.10, with a median of 8.60.
These are just a handful of the figures considered in DNB Bank ASA's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that DNBBY is an impressive value stock right now.
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DNB Bank ASA (DNBBY) : Free Stock Analysis Report
