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Are Investors Undervaluing BNP Paribas (BNPQY) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 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 company value investors might notice is BNP Paribas (BNPQY - Free Report) . BNPQY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 5.49 right now. For comparison, its industry sports an average P/E of 6.97. Over the past 52 weeks, BNPQY's Forward P/E has been as high as 9.88 and as low as 5.33, with a median of 7.46.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BNPQY has a P/S ratio of 1.02. This compares to its industry's average P/S of 1.24.

Finally, our model also underscores that BNPQY has a P/CF ratio of 4.02. 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. This stock's P/CF looks attractive against its industry's average P/CF of 11.53. Within the past 12 months, BNPQY's P/CF has been as high as 5.37 and as low as 3.43, with a median of 4.63.

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


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