Is Synovus Financial (SNV) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Synovus Financial (SNV). SNV is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 8.92, which compares to its industry's average of 10.03. Over the last 12 months, SNV's Forward P/E has been as high as 10.52 and as low as 5.22, with a median of 7.32.
Investors should also recognize that SNV has a P/B ratio of 1.15. 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 stock's P/B looks solid versus its industry's average P/B of 1.78. Over the past 12 months, SNV's P/B has been as high as 1.64 and as low as 0.88, with a median of 1.08.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SNV has a P/S ratio of 1.5. This compares to its industry's average P/S of 1.8.
Finally, our model also underscores that SNV has a P/CF ratio of 8.56. 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. This stock's P/CF looks attractive against its industry's average P/CF of 12.23. SNV's P/CF has been as high as 9.34 and as low as 4.40, with a median of 5.36, all within the past year.
These are just a handful of the figures considered in Synovus Financial'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 SNV is an impressive value stock right now.
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Synovus Financial Corp. (SNV) : Free Stock Analysis Report
