Are Investors Undervaluing Nordea Bank (NRDBY) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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.
One company to watch right now is Nordea Bank (NRDBY). NRDBY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
We should also highlight that NRDBY has a P/B ratio of 1.30. 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 solid versus its industry's average P/B of 1.45. Within the past 52 weeks, NRDBY's P/B has been as high as 1.42 and as low as 0.97, with a median of 1.27.
Finally, investors will want to recognize that NRDBY has a P/CF ratio of 7.82. 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 11.81. Over the past year, NRDBY's P/CF has been as high as 12.66 and as low as 7.58, with a median of 9.20.
Investors could also keep in mind Shinhan Financial Group Co (SHG), an Banks - Foreign stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shinhan Financial Group Co is currently trading with a Forward P/E ratio of 3.94 while its PEG ratio sits at 1.21. Both of the company's metrics compare favorably to its industry's average P/E of 7.09 and average PEG ratio of 0.58.
SHG's price-to-earnings ratio has been as high as 5.32 and as low as 3.06, with a median of 4.13, while its PEG ratio has been as high as 2.74 and as low as 0.22, with a median of 1.17, all within the past year.
Shinhan Financial Group Co also has a P/B ratio of 0.31 compared to its industry's price-to-book ratio of 1.45. Over the past year, its P/B ratio has been as high as 0.52, as low as 0.29, with a median of 0.34.
Value investors will likely look at more than just these metrics, but the above data helps show that Nordea Bank and Shinhan Financial Group Co are likely undervalued currently. And when considering the strength of its earnings outlook, NRDBY and SHG sticks out as one of the market's strongest value stocks.
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
Nordea Bank AB (NRDBY) : Free Stock Analysis Report
Shinhan Financial Group Co Ltd (SHG) : Free Stock Analysis Report
