Are Investors Undervaluing VEON Ltd. (VEON) 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 VEON Ltd. (VEON). VEON is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.35, which compares to its industry's average of 13.57. VEON's Forward P/E has been as high as 14.13 and as low as 4.99, with a median of 6.44, all within the past year.
Investors should also recognize that VEON has a P/B ratio of 2.13. 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 3.12. VEON's P/B has been as high as 2.17 and as low as 1.22, with a median of 1.61, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. VEON has a P/S ratio of 0.53. This compares to its industry's average P/S of 1.07.
These figures are just a handful of the metrics value investors tend to look at, but they help show that VEON Ltd. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, VEON feels like a great value stock at the moment.
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