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Should Value Investors Buy These Finance Stocks?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 stock to keep an eye on is Commerzbank (CRZBY - Free Report) . CRZBY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 8.39, which compares to its industry's average of 8.73. Over the last 12 months, CRZBY's Forward P/E has been as high as 5,212.42 and as low as -111.95, with a median of 14.11.

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. CRZBY has a P/S ratio of 0.68. This compares to its industry's average P/S of 1.55.

Another great Banks - Foreign stock you could consider is UBS (UBS - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.

Shares of UBS currently holds a Forward P/E ratio of 7.57, and its PEG ratio is 0.42. In comparison, its industry sports average P/E and PEG ratios of 8.73 and 0.45.

UBS's price-to-earnings ratio has been as high as 10.80 and as low as 6.90, with a median of 9.37, while its PEG ratio has been as high as 4.98 and as low as 0.38, with a median of 1.71, all within the past year.

UBS sports a P/B ratio of 0.95 as well; this compares to its industry's price-to-book ratio of 1.33. In the past 52 weeks, UBS's P/B has been as high as 1.22, as low as 0.86, with a median of 0.99.

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


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