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Should Value Investors Buy StoneX Group (SNEX) Stock?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

StoneX Group (SNEX - Free Report) is a stock many investors are watching right now. SNEX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.89. This compares to its industry's average Forward P/E of 12.99. Over the past year, SNEX's Forward P/E has been as high as 10.94 and as low as 8.29, with a median of 9.37.

Another valuation metric that we should highlight is SNEX's P/B ratio of 1.43. 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. SNEX's current P/B looks attractive when compared to its industry's average P/B of 2.22. Over the past 12 months, SNEX's P/B has been as high as 1.84 and as low as 1.28, with a median of 1.49.

Finally, investors should note that SNEX has a P/CF ratio of 5.82. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 14.74. Within the past 12 months, SNEX's P/CF has been as high as 6.87 and as low as 5.07, with a median of 5.90.

These are just a handful of the figures considered in StoneX Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SNEX is an impressive value stock right now.


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