Are Investors Undervaluing Standard Chartered (SCBFF) 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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Standard Chartered (SCBFF) is a stock many investors are watching right now. SCBFF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 5.09, which compares to its industry's average of 8.68. SCBFF's Forward P/E has been as high as 6.99 and as low as 4.22, with a median of 5.16, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SCBFF has a P/S ratio of 0.61. This compares to its industry's average P/S of 1.17.
Value investors will likely look at more than just these metrics, but the above data helps show that Standard Chartered is likely undervalued currently. And when considering the strength of its earnings outlook, SCBFF sticks out at as one of the market's strongest value stocks.
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Standard Chartered PLC (SCBFF) : Free Stock Analysis Report