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Are Investors Undervaluing Stifel Financial (SF) 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 stock to keep an eye on is Stifel Financial (SF - Free Report) . SF is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 10.07. This compares to its industry's average Forward P/E of 11.94. Over the past 52 weeks, SF's Forward P/E has been as high as 18.19 and as low as 9.74, with a median of 12.27.

Another notable valuation metric for SF is its P/B ratio of 1.42. 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. This stock's P/B looks solid versus its industry's average P/B of 2.54. SF's P/B has been as high as 1.72 and as low as 1.15, with a median of 1.46, over the past year.

Finally, investors will want to recognize that SF has a P/CF ratio of 11.44. 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. SF's current P/CF looks attractive when compared to its industry's average P/CF of 21.91. Over the past year, SF's P/CF has been as high as 14.28 and as low as 10.63, with a median of 12.39.

These are just a handful of the figures considered in Stifel Financial'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 SF is an impressive value stock right now.


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