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Is Banco Do Brasil (BDORY) Stock Undervalued Right Now?

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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

Banco Do Brasil (BDORY - Free Report) is a stock many investors are watching right now. BDORY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 3.90, while its industry has an average P/E of 6.76. Over the past 52 weeks, BDORY's Forward P/E has been as high as 12.78 and as low as 2.96, with a median of 3.82.

Investors should also note that BDORY holds a PEG ratio of 0.22. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BDORY's industry has an average PEG of 0.40 right now. Within the past year, BDORY's PEG has been as high as 0.49 and as low as 0.21, with a median of 0.29.

Another notable valuation metric for BDORY is its P/B ratio of 0.65. 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. BDORY's current P/B looks attractive when compared to its industry's average P/B of 1.22. Within the past 52 weeks, BDORY's P/B has been as high as 0.80 and as low as 0.52, with a median of 0.64.

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. BDORY has a P/S ratio of 0.58. This compares to its industry's average P/S of 1.11.

Finally, investors will want to recognize that BDORY has a P/CF ratio of 3.91. 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. BDORY's P/CF compares to its industry's average P/CF of 11.19. Over the past year, BDORY's P/CF has been as high as 5.14 and as low as 3.23, with a median of 4.17.

Another great Banks - Foreign stock you could consider is UBS (UBS - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Shares of UBS are currently trading at a forward earnings multiple of 7.19 and a PEG ratio of 1.88 compared to its industry's P/E and PEG ratios of 6.76 and 0.40, respectively.

UBS's Forward P/E has been as high as 10.21 and as low as 6.75, with a median of 8.28. During the same time period, its PEG ratio has been as high as 2.28, as low as 0.38, with a median of 0.83.

UBS sports a P/B ratio of 0.89 as well; this compares to its industry's price-to-book ratio of 1.22. 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 1.02.

Value investors will likely look at more than just these metrics, but the above data helps show that Banco Do Brasil and UBS are likely undervalued currently. And when considering the strength of its earnings outlook, BDORY and UBS sticks out as one of the market's strongest value stocks.


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