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Is Sun Life (SLF) Stock Undervalued 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 Sun Life (SLF - Free Report) . SLF is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Investors should also recognize that SLF has a P/B ratio of 1.64. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.79. Over the past 12 months, SLF's P/B has been as high as 1.76 and as low as 1.30, with a median of 1.44.

Finally, investors will want to recognize that SLF has a P/CF ratio of 13.69. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. SLF's P/CF compares to its industry's average P/CF of 15.68. Over the past 52 weeks, SLF's P/CF has been as high as 14.70 and as low as 11.19, with a median of 13.54.

These are only a few of the key metrics included in Sun Life'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, SLF looks like an impressive value stock at the moment.


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