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Are Investors Undervaluing StoneX Group (SNEX) 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.

StoneX Group (SNEX - Free Report) is a stock many investors are watching right now. SNEX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 11.09. This compares to its industry's average Forward P/E of 14.79. Over the past year, SNEX's Forward P/E has been as high as 11.41 and as low as 8.32, with a median of 9.54.

Another valuation metric that we should highlight is SNEX's P/B ratio of 1.62. 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. This stock's P/B looks attractive against its industry's average P/B of 2.37. Within the past 52 weeks, SNEX's P/B has been as high as 1.67 and as low as 1.31, with a median of 1.47.

Finally, we should also recognize that SNEX has a P/CF ratio of 7.48. 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 12.86. Within the past 12 months, SNEX's P/CF has been as high as 7.69 and as low as 5.34, with a median of 6.48.

These figures are just a handful of the metrics value investors tend to look at, but they help show that StoneX Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SNEX feels like a great value stock at the moment.


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