Is Standard Chartered (SCBFF) a Great Value Stock Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Standard Chartered (SCBFF). SCBFF is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 6.51 right now. For comparison, its industry sports an average P/E of 8.32. Over the last 12 months, SCBFF's Forward P/E has been as high as 7.78 and as low as 5.57, with a median of 6.67.
Another valuation metric that we should highlight is SCBFF's P/B ratio of 0.45. The P/B ratio is used to compare a stock's market value with 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 1.29. Over the past 12 months, SCBFF's P/B has been as high as 0.49 and as low as 0.33, with a median of 0.40.
Value investors will likely look at more than just these metrics, but the above data helps show that Standard Chartered is likely undervalued currently. And when considering the strength of its earnings outlook, SCBFF sticks out at as one of the market's strongest value stocks.
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