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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
One company to watch right now is BOK Financial (BOKF). BOKF 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 12.93, which compares to its industry's average of 14.76. Over the past 52 weeks, BOKF's Forward P/E has been as high as 14.18 and as low as 10.49, with a median of 12.21.
Another valuation metric that we should highlight is BOKF's P/B ratio of 1.26. 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. BOKF's current P/B looks attractive when compared to its industry's average P/B of 2.05. BOKF's P/B has been as high as 1.37 and as low as 1.02, with a median of 1.19, over 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. BOKF has a P/S ratio of 2.07. This compares to its industry's average P/S of 2.23.
Finally, investors should note that BOKF has a P/CF ratio of 11.84. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. BOKF's current P/CF looks attractive when compared to its industry's average P/CF of 17.41. BOKF's P/CF has been as high as 14.07 and as low as 8.35, with a median of 11.48, all within the past year.
These are just a handful of the figures considered in BOK Financial's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BOKF is an impressive value stock right now.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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