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Should Value Investors Buy Standard Chartered (SCBFF) 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 stock to keep an eye on is Standard Chartered (SCBFF - Free Report) . SCBFF is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 5.10. This compares to its industry's average Forward P/E of 7.92. SCBFF's Forward P/E has been as high as 6.99 and as low as 4.22, with a median of 5.25, all within the past year.

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. SCBFF has a P/S ratio of 0.6. This compares to its industry's average P/S of 1.13.

Woori Bank (WF - Free Report) may be another strong Banks - Foreign stock to add to your shortlist. WF is a # 2 (Buy) stock with a Value grade of A.

Shares of Woori Bank currently holds a Forward P/E ratio of 3.79, and its PEG ratio is 0.37. In comparison, its industry sports average P/E and PEG ratios of 7.92 and 0.64.

Over the last 12 months, WF's P/E has been as high as 4.34, as low as 2.78, with a median of 3.44, and its PEG ratio has been as high as 2.94, as low as 0.16, with a median of 2.29.

Furthermore, Woori Bank holds a P/B ratio of 0.30 and its industry's price-to-book ratio is 1.41. WF's P/B has been as high as 0.35, as low as 0.23, with a median of 0.28 over the past 12 months.

These are only a few of the key metrics included in Standard Chartered and Woori Bank strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, SCBFF and WF look like an impressive value stock at the moment.


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