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Is PennyMac Financial (PFSI) a Great Value Stock 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, 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 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 company to watch right now is PennyMac Financial (PFSI - Free Report) . PFSI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 7.49, which compares to its industry's average of 8.43. Over the last 12 months, PFSI's Forward P/E has been as high as 8.53 and as low as 6.56, with a median of 7.58.
We also note that PFSI holds a PEG ratio of 0.75. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PFSI's industry currently sports an average PEG of 0.99. Within the past year, PFSI's PEG has been as high as 0.85 and as low as 0.66, with a median of 0.76.
We should also highlight that PFSI has a P/B ratio of 1.37. 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 2.29. PFSI's P/B has been as high as 1.46 and as low as 0.25, with a median of 1.04, over the past year.
Finally, our model also underscores that PFSI has a P/CF ratio of 3.53. 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 stock's P/CF looks attractive against its industry's average P/CF of 12.71. Over the past 52 weeks, PFSI's P/CF has been as high as 5.70 and as low as 3.01, with a median of 4.11.
These figures are just a handful of the metrics value investors tend to look at, but they help show that PennyMac Financial is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PFSI feels like a great value stock at the moment.
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Is PennyMac Financial (PFSI) a Great Value Stock Right Now?
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, 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 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 company to watch right now is PennyMac Financial (PFSI - Free Report) . PFSI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 7.49, which compares to its industry's average of 8.43. Over the last 12 months, PFSI's Forward P/E has been as high as 8.53 and as low as 6.56, with a median of 7.58.
We also note that PFSI holds a PEG ratio of 0.75. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PFSI's industry currently sports an average PEG of 0.99. Within the past year, PFSI's PEG has been as high as 0.85 and as low as 0.66, with a median of 0.76.
We should also highlight that PFSI has a P/B ratio of 1.37. 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 2.29. PFSI's P/B has been as high as 1.46 and as low as 0.25, with a median of 1.04, over the past year.
Finally, our model also underscores that PFSI has a P/CF ratio of 3.53. 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 stock's P/CF looks attractive against its industry's average P/CF of 12.71. Over the past 52 weeks, PFSI's P/CF has been as high as 5.70 and as low as 3.01, with a median of 4.11.
These figures are just a handful of the metrics value investors tend to look at, but they help show that PennyMac Financial is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PFSI feels like a great value stock at the moment.