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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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 value investors might notice is Svenska Handelsbanken Ab Publ (SVNLY). SVNLY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.97, which compares to its industry's average of 9.09. Over the last 12 months, SVNLY's Forward P/E has been as high as 10.55 and as low as 7.19, with a median of 9.02.
We should also highlight that SVNLY has a P/B ratio of 1.06. Investors use the P/B ratio to look at a stock's market value versus 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 1.69. Over the past 12 months, SVNLY's P/B has been as high as 1.23 and as low as 0.87, with a median of 1.06.
Finally, our model also underscores that SVNLY has a P/CF ratio of 6.95. 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. SVNLY's current P/CF looks attractive when compared to its industry's average P/CF of 13.94. Within the past 12 months, SVNLY's P/CF has been as high as 8.17 and as low as 5.37, with a median of 6.92.
These are only a few of the key metrics included in Svenska Handelsbanken Ab Publ'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, SVNLY looks like an impressive value stock at the moment.
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