Are Investors Undervaluing Commerzbank (CRZBY) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
Commerzbank (CRZBY) is a stock many investors are watching right now. CRZBY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 7.42 right now. For comparison, its industry sports an average P/E of 7.95. Over the past year, CRZBY's Forward P/E has been as high as 85.28 and as low as 7.42, with a median of 13.05.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CRZBY has a P/S ratio of 0.73. This compares to its industry's average P/S of 1.42.
Finally, our model also underscores that CRZBY has a P/CF ratio of 3.47. 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 11.95. Over the past year, CRZBY's P/CF has been as high as 4.60 and as low as 2.60, with a median of 3.23.
If you're looking for another solid Banks - Foreign value stock, take a look at Western New England Bancorp (WNEB). WNEB is a # 2 (Buy) stock with a Value score of A.
Western New England Bancorp also has a P/B ratio of 0.78 compared to its industry's price-to-book ratio of 1.26. Over the past year, its P/B ratio has been as high as 1.05, as low as 0.75, with a median of 0.92.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Commerzbank and Western New England Bancorp are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CRZBY and WNEB feels like a great 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
Commerzbank AG (CRZBY) : Free Stock Analysis Report
Western New England Bancorp (WNEB) : Free Stock Analysis Report
To read this article on Zacks.com click here.
