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Is PennyMac Financial (PFSI) Stock Undervalued Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 to watch right now is PennyMac Financial (PFSI - Free Report) . PFSI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.28, which compares to its industry's average of 8.42. Over the past year, PFSI's Forward P/E has been as high as 8.53 and as low as 6.56, with a median of 7.52.
We also note that PFSI holds a PEG ratio of 0.73. 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. PFSI's PEG compares to its industry's average PEG of 1.01. Within the past year, PFSI's PEG has been as high as 0.85 and as low as 0.66, with a median of 0.75.
Investors should also recognize that PFSI has a P/B ratio of 1.38. 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 company's current P/B looks solid when compared to its industry's average P/B of 2.15. Over the past year, PFSI's P/B has been as high as 1.41 and as low as 0.95, with a median of 1.13.
Finally, investors should note that PFSI has a P/CF ratio of 3.35. 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. PFSI's P/CF compares to its industry's average P/CF of 11.24. Over the past year, PFSI's P/CF has been as high as 4.73 and as low as 2.96, with a median of 3.82.
These are only a few of the key metrics included in PennyMac Financial'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, PFSI looks like an impressive value stock at the moment.
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Is PennyMac Financial (PFSI) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 to watch right now is PennyMac Financial (PFSI - Free Report) . PFSI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.28, which compares to its industry's average of 8.42. Over the past year, PFSI's Forward P/E has been as high as 8.53 and as low as 6.56, with a median of 7.52.
We also note that PFSI holds a PEG ratio of 0.73. 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. PFSI's PEG compares to its industry's average PEG of 1.01. Within the past year, PFSI's PEG has been as high as 0.85 and as low as 0.66, with a median of 0.75.
Investors should also recognize that PFSI has a P/B ratio of 1.38. 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 company's current P/B looks solid when compared to its industry's average P/B of 2.15. Over the past year, PFSI's P/B has been as high as 1.41 and as low as 0.95, with a median of 1.13.
Finally, investors should note that PFSI has a P/CF ratio of 3.35. 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. PFSI's P/CF compares to its industry's average P/CF of 11.24. Over the past year, PFSI's P/CF has been as high as 4.73 and as low as 2.96, with a median of 3.82.
These are only a few of the key metrics included in PennyMac Financial'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, PFSI looks like an impressive value stock at the moment.