Is Synovus Financial (SNV) Stock Undervalued 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 stock to keep an eye on is Synovus Financial (SNV). SNV is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.08. This compares to its industry's average Forward P/E of 10.05. Over the past 52 weeks, SNV's Forward P/E has been as high as 10.52 and as low as 5.22, with a median of 7.32.
We should also highlight that SNV has a P/B ratio of 1.18. 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 attractive against its industry's average P/B of 1.78. SNV's P/B has been as high as 1.60 and as low as 0.88, with a median of 1.08, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SNV has a P/S ratio of 1.57. This compares to its industry's average P/S of 1.84.
Finally, we should also recognize that SNV has a P/CF ratio of 8.75. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 12.11. Within the past 12 months, SNV's P/CF has been as high as 9.34 and as low as 4.40, with a median of 5.36.
These are only a few of the key metrics included in Synovus Financial's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, SNV looks like an impressive value stock at the moment.
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Synovus Financial Corp. (SNV) : Free Stock Analysis Report
