U.S. Markets open in 7 hrs 53 mins
  • S&P Futures

    4,163.75
    +8.25 (+0.20%)
     
  • Dow Futures

    34,037.00
    +79.00 (+0.23%)
     
  • Nasdaq Futures

    13,914.50
    +17.25 (+0.12%)
     
  • Russell 2000 Futures

    2,232.70
    +3.40 (+0.15%)
     
  • Crude Oil

    64.00
    +0.62 (+0.98%)
     
  • Gold

    1,770.50
    -0.10 (-0.01%)
     
  • Silver

    25.92
    +0.09 (+0.34%)
     
  • EUR/USD

    1.2066
    +0.0025 (+0.2051%)
     
  • 10-Yr Bond

    1.6010
    0.0000 (0.00%)
     
  • Vix

    17.29
    +1.04 (+6.40%)
     
  • GBP/USD

    1.3992
    +0.0008 (+0.0588%)
     
  • USD/JPY

    108.2270
    +0.0770 (+0.0712%)
     
  • BTC-USD

    55,119.77
    -1,799.18 (-3.16%)
     
  • CMC Crypto 200

    1,241.77
    -57.18 (-4.40%)
     
  • FTSE 100

    7,000.08
    -19.45 (-0.28%)
     
  • Nikkei 225

    29,071.93
    -613.44 (-2.07%)
     

Should Value Investors Buy UBS (UBS) Stock?

  • Oops!
    Something went wrong.
    Please try again later.
Zacks Equity Research
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.

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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

UBS (UBS) is a stock many investors are watching right now. UBS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

We also note that UBS holds a PEG ratio of 1.32. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. UBS's PEG compares to its industry's average PEG of 1.66. Within the past year, UBS's PEG has been as high as 9.61 and as low as 0.89, with a median of 1.83.

Another notable valuation metric for UBS is its P/B ratio of 0.87. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. UBS's current P/B looks attractive when compared to its industry's average P/B of 0.97. Over the past year, UBS's P/B has been as high as 0.90 and as low as 0.51, with a median of 0.76.

Finally, investors should note that UBS has a P/CF ratio of 6.89. 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. UBS's current P/CF looks attractive when compared to its industry's average P/CF of 13.73. Over the past 52 weeks, UBS's P/CF has been as high as 8.15 and as low as 4.65, with a median of 6.66.

These figures are just a handful of the metrics value investors tend to look at, but they help show that UBS is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, UBS feels like a great value stock at the moment.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
UBS Group AG (UBS) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.