Are Investors Undervaluing Grupo Supervielle (SUPV) Right Now?
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, 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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Grupo Supervielle (SUPV). SUPV is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 4.24. This compares to its industry's average Forward P/E of 9.90. SUPV's Forward P/E has been as high as 7.77 and as low as 1.62, with a median of 3.36, all within the past year.
Another valuation metric that we should highlight is SUPV's P/B ratio of 0.63. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 0.97. Over the past 12 months, SUPV's P/B has been as high as 1.60 and as low as 0.27, with a median of 0.58.
These are only a few of the key metrics included in Grupo Supervielle'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, SUPV looks like an impressive value stock at the moment.
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