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Is Franklin Resources (BEN) 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.
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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Franklin Resources (BEN - Free Report) . BEN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 10.26, while its industry has an average P/E of 15.02. Over the last 12 months, BEN's Forward P/E has been as high as 13.61 and as low as 8.97, with a median of 10.48.
We should also highlight that BEN has a P/B ratio of 1.07. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. BEN's current P/B looks attractive when compared to its industry's average P/B of 3.02. Within the past 52 weeks, BEN's P/B has been as high as 1.35 and as low as 0.88, with a median of 1.06.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BEN has a P/S ratio of 1.78. This compares to its industry's average P/S of 2.44.
Finally, investors will want to recognize that BEN has a P/CF ratio of 9.65. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 27.96. Over the past 52 weeks, BEN's P/CF has been as high as 11.29 and as low as 7.91, with a median of 9.72.
These are only a few of the key metrics included in Franklin Resources's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BEN looks like an impressive value stock at the moment.
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Is Franklin Resources (BEN) Stock Undervalued Right Now?
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.
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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Franklin Resources (BEN - Free Report) . BEN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 10.26, while its industry has an average P/E of 15.02. Over the last 12 months, BEN's Forward P/E has been as high as 13.61 and as low as 8.97, with a median of 10.48.
We should also highlight that BEN has a P/B ratio of 1.07. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. BEN's current P/B looks attractive when compared to its industry's average P/B of 3.02. Within the past 52 weeks, BEN's P/B has been as high as 1.35 and as low as 0.88, with a median of 1.06.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BEN has a P/S ratio of 1.78. This compares to its industry's average P/S of 2.44.
Finally, investors will want to recognize that BEN has a P/CF ratio of 9.65. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 27.96. Over the past 52 weeks, BEN's P/CF has been as high as 11.29 and as low as 7.91, with a median of 9.72.
These are only a few of the key metrics included in Franklin Resources's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BEN looks like an impressive value stock at the moment.