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BNPQY vs. CM: Which Stock Should Value Investors Buy Now?
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Investors interested in Banks - Foreign stocks are likely familiar with BNP Paribas SA (BNPQY - Free Report) and Canadian Imperial Bank (CM - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, BNP Paribas SA has a Zacks Rank of #2 (Buy), while Canadian Imperial Bank has a Zacks Rank of #3 (Hold). This means that BNPQY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
BNPQY currently has a forward P/E ratio of 5.02, while CM has a forward P/E of 8.15. We also note that BNPQY has a PEG ratio of 0.44. 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. CM currently has a PEG ratio of 2.52.
Another notable valuation metric for BNPQY is its P/B ratio of 0.44. 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. By comparison, CM has a P/B of 1.21.
These are just a few of the metrics contributing to BNPQY's Value grade of A and CM's Value grade of C.
BNPQY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that BNPQY is likely the superior value option right now.
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BNPQY vs. CM: Which Stock Should Value Investors Buy Now?
Investors interested in Banks - Foreign stocks are likely familiar with BNP Paribas SA (BNPQY - Free Report) and Canadian Imperial Bank (CM - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, BNP Paribas SA has a Zacks Rank of #2 (Buy), while Canadian Imperial Bank has a Zacks Rank of #3 (Hold). This means that BNPQY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
BNPQY currently has a forward P/E ratio of 5.02, while CM has a forward P/E of 8.15. We also note that BNPQY has a PEG ratio of 0.44. 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. CM currently has a PEG ratio of 2.52.
Another notable valuation metric for BNPQY is its P/B ratio of 0.44. 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. By comparison, CM has a P/B of 1.21.
These are just a few of the metrics contributing to BNPQY's Value grade of A and CM's Value grade of C.
BNPQY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that BNPQY is likely the superior value option right now.