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Should Value Investors Buy BNP Paribas (BNPQY) Stock?

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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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is BNP Paribas (BNPQY - Free Report) . BNPQY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 7.39, which compares to its industry's average of 8.17. Over the past year, BNPQY's Forward P/E has been as high as 7.88 and as low as 5.48, with a median of 6.30.

BNPQY is also sporting a PEG ratio of 0.29. 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. BNPQY's PEG compares to its industry's average PEG of 0.66. BNPQY's PEG has been as high as 0.45 and as low as 0.22, with a median of 0.34, all within the past year.

Another notable valuation metric for BNPQY is its P/B ratio of 0.60. 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. BNPQY's current P/B looks attractive when compared to its industry's average P/B of 1.59. Over the past 12 months, BNPQY's P/B has been as high as 0.63 and as low as 0.47, with a median of 0.55.

Finally, our model also underscores that BNPQY has a P/CF ratio of 4.90. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 12.77. Over the past year, BNPQY's P/CF has been as high as 5.20 and as low as 3.47, with a median of 4.23.

These are only a few of the key metrics included in BNP Paribas'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, BNPQY looks like an impressive value stock at the moment.


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