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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company value investors might notice is Capital One (COF - Free Report) . COF is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 10.01. This compares to its industry's average Forward P/E of 24.32. Over the last 12 months, COF's Forward P/E has been as high as 64.36 and as low as 3.69, with a median of 11.89.
COF is also sporting a PEG ratio of 1.05. 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. COF's PEG compares to its industry's average PEG of 2.54. Over the past 52 weeks, COF's PEG has been as high as 7.15 and as low as 0.41, with a median of 1.47.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Capital One is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, COF feels like a great value stock at the moment.
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Is Capital One (COF) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company value investors might notice is Capital One (COF - Free Report) . COF is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 10.01. This compares to its industry's average Forward P/E of 24.32. Over the last 12 months, COF's Forward P/E has been as high as 64.36 and as low as 3.69, with a median of 11.89.
COF is also sporting a PEG ratio of 1.05. 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. COF's PEG compares to its industry's average PEG of 2.54. Over the past 52 weeks, COF's PEG has been as high as 7.15 and as low as 0.41, with a median of 1.47.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Capital One is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, COF feels like a great value stock at the moment.