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Are Investors Undervaluing Commerzbank (CRZBY) Right Now?

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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 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.

One company to watch right now is Commerzbank (CRZBY - Free Report) . CRZBY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CRZBY has a P/S ratio of 0.75. This compares to its industry's average P/S of 1.26.

Finally, investors should note that CRZBY has a P/CF ratio of 3.90. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.84. Within the past 12 months, CRZBY's P/CF has been as high as 4.60 and as low as 2.68, with a median of 3.37.

Investors could also keep in mind Banco Santander (SAN - Free Report) , an Banks - Foreign stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Banco Santander sports a P/B ratio of 0.43 as well; this compares to its industry's price-to-book ratio of 1.28. In the past 52 weeks, SAN's P/B has been as high as 0.60, as low as 0.37, with a median of 0.47.

These are only a few of the key metrics included in Commerzbank and Banco Santander strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CRZBY and SAN look like an impressive value stock at the moment.


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Banco Santander, S.A. (SAN) - free report >>

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