We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Banco Santander (SAN) a Great Value Stock Right Now?
Read MoreHide Full Article
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Banco Santander (SAN - Free Report) . SAN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 4.99, which compares to its industry's average of 8.21. SAN's Forward P/E has been as high as 11.10 and as low as 4.78, with a median of 7.54, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SAN has a P/S ratio of 0.89. This compares to its industry's average P/S of 1.55.
Finally, investors should note that SAN has a P/CF ratio of 3.76. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.95. Over the past 52 weeks, SAN's P/CF has been as high as 7.04 and as low as 3.60, with a median of 5.27.
Investors could also keep in mind UBS (UBS - Free Report) , an Banks - Foreign stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Shares of UBS currently holds a Forward P/E ratio of 7.52, and its PEG ratio is 0.58. In comparison, its industry sports average P/E and PEG ratios of 8.21 and 0.48.
UBS's Forward P/E has been as high as 10.29 and as low as 6.90, with a median of 9.22. During the same time period, its PEG ratio has been as high as 2.80, as low as 0.38, with a median of 0.93.
UBS also has a P/B ratio of 1.02 compared to its industry's price-to-book ratio of 1.57. Over the past year, its P/B ratio has been as high as 1.22, as low as 0.86, with a median of 1.01.
These are only a few of the key metrics included in Banco Santander and UBS strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, SAN and UBS look like an impressive value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Banco Santander (SAN) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Banco Santander (SAN - Free Report) . SAN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 4.99, which compares to its industry's average of 8.21. SAN's Forward P/E has been as high as 11.10 and as low as 4.78, with a median of 7.54, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SAN has a P/S ratio of 0.89. This compares to its industry's average P/S of 1.55.
Finally, investors should note that SAN has a P/CF ratio of 3.76. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.95. Over the past 52 weeks, SAN's P/CF has been as high as 7.04 and as low as 3.60, with a median of 5.27.
Investors could also keep in mind UBS (UBS - Free Report) , an Banks - Foreign stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Shares of UBS currently holds a Forward P/E ratio of 7.52, and its PEG ratio is 0.58. In comparison, its industry sports average P/E and PEG ratios of 8.21 and 0.48.
UBS's Forward P/E has been as high as 10.29 and as low as 6.90, with a median of 9.22. During the same time period, its PEG ratio has been as high as 2.80, as low as 0.38, with a median of 0.93.
UBS also has a P/B ratio of 1.02 compared to its industry's price-to-book ratio of 1.57. Over the past year, its P/B ratio has been as high as 1.22, as low as 0.86, with a median of 1.01.
These are only a few of the key metrics included in Banco Santander and UBS strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, SAN and UBS look like an impressive value stock at the moment.