Is E-Trade (ETFC) a Great Value Stock 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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.
One company value investors might notice is E-Trade (ETFC). ETFC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
We should also highlight that ETFC has a P/B ratio of 1.84. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. ETFC's current P/B looks attractive when compared to its industry's average P/B of 1.91. Within the past 52 weeks, ETFC's P/B has been as high as 2.82 and as low as 1.73, with a median of 2.35.
Finally, we should also recognize that ETFC has a P/CF ratio of 9.75. 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. ETFC's current P/CF looks attractive when compared to its industry's average P/CF of 16.46. Over the past year, ETFC's P/CF has been as high as 17.99 and as low as 9.17, with a median of 15.54.
These are only a few of the key metrics included in E-Trade'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, ETFC looks like an impressive value stock at the moment.