Should Value Investors Buy Credit Agricole (CRARY) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
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 Credit Agricole (CRARY). CRARY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 6.16, while its industry has an average P/E of 7.09. Over the past 52 weeks, CRARY's Forward P/E has been as high as 9.17 and as low as 5.60, with a median of 7.58.
We should also highlight that CRARY has a P/B ratio of 0.49. The P/B ratio pits a stock's market value against 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 1.45. Within the past 52 weeks, CRARY's P/B has been as high as 0.50 and as low as 0.26, with a median of 0.45.
If you're looking for another solid Banks - Foreign value stock, take a look at Lloyds Banking Group (LYG). LYG is a # 2 (Buy) stock with a Value score of A.
Lloyds Banking Group is currently trading with a Forward P/E ratio of 4.94 while its PEG ratio sits at 0.43. 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.
LYG's Forward P/E has been as high as 6.62 and as low as 4.83, with a median of 5.57. During the same time period, its PEG ratio has been as high as 5.26, as low as 0.16, with a median of 0.91.
Furthermore, Lloyds Banking Group holds a P/B ratio of 0.61 and its industry's price-to-book ratio is 1.45. LYG's P/B has been as high as 0.74, as low as 0.49, with a median of 0.65 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Credit Agricole and Lloyds Banking Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CRARY and LYG feels like a great value stock at the moment.
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Credit Agricole SA (CRARY) : Free Stock Analysis Report
Lloyds Banking Group PLC (LYG) : Free Stock Analysis Report
