Should Value Investors Buy Nordea Bank (NRDBY) Stock?
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.
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.
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 value investors might notice is Nordea Bank (NRDBY). NRDBY 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 7.40, which compares to its industry's average of 7.64. Over the past year, NRDBY's Forward P/E has been as high as 10.41 and as low as 7.04, with a median of 8.78.
NRDBY is also sporting a PEG ratio of 0.72. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NRDBY's PEG compares to its industry's average PEG of 0.74. Over the past 52 weeks, NRDBY's PEG has been as high as 2.41 and as low as 0.65, with a median of 1.01.
We should also highlight that NRDBY has a P/B ratio of 1.17. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.46. Over the past year, NRDBY's P/B has been as high as 1.42 and as low as 0.97, with a median of 1.16.
Finally, investors will want to recognize that NRDBY has a P/CF ratio of 8.24. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 12.53. NRDBY's P/CF has been as high as 12.66 and as low as 7.62, with a median of 9.88, all within the past year.
Investors could also keep in mind Svenska Handelsbanken Ab Publ (SVNLY), an Banks - Foreign stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Svenska Handelsbanken Ab Publ is currently trading with a Forward P/E ratio of 7.19 while its PEG ratio sits at 1.35. Both of the company's metrics compare favorably to its industry's average P/E of 7.64 and average PEG ratio of 0.74.
Over the past year, SVNLY's P/E has been as high as 10.92, as low as 6.72, with a median of 9.05; its PEG ratio has been as high as 2.56, as low as 0.25, with a median of 1.01 during the same time period.
Svenska Handelsbanken Ab Publ sports a P/B ratio of 0.91 as well; this compares to its industry's price-to-book ratio of 1.46. In the past 52 weeks, SVNLY's P/B has been as high as 1.16, as low as 0.83, with a median of 0.94.
These are just a handful of the figures considered in Nordea Bank and Svenska Handelsbanken Ab Publ'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 NRDBY and SVNLY is an impressive value stock right now.
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Nordea Bank AB (NRDBY) : Free Stock Analysis Report
Svenska Handelsbanken Ab Publ (SVNLY) : Free Stock Analysis Report
