Yahoo Finance Is Itau Unibanco (ITUB) Stock Undervalued 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company value investors might notice is Itau Unibanco (ITUB). ITUB is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 6.89, while its industry has an average P/E of 7.21. ITUB's Forward P/E has been as high as 8.95 and as low as 6.05, with a median of 7.21, all within the past year.
ITUB is also sporting a PEG ratio of 0.55. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ITUB's industry currently sports an average PEG of 0.73. Over the last 12 months, ITUB's PEG has been as high as 0.60 and as low as 0.32, with a median of 0.48.
We should also highlight that ITUB has a P/B ratio of 1.41. 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 solid versus its industry's average P/B of 1.48. Over the past year, ITUB's P/B has been as high as 1.77 and as low as 1.15, with a median of 1.44.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ITUB has a P/S ratio of 0.89. This compares to its industry's average P/S of 1.35.
Finally, our model also underscores that ITUB has a P/CF ratio of 7.41. 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. ITUB's P/CF compares to its industry's average P/CF of 13.66. Over the past 52 weeks, ITUB's P/CF has been as high as 9.13 and as low as 6.48, with a median of 7.53.
If you're looking for another solid Banks - Foreign value stock, take a look at Banco Santander (SAN). SAN is a # 2 (Buy) stock with a Value score of A.
Banco Santander sports a P/B ratio of 0.52 as well; this compares to its industry's price-to-book ratio of 1.48. In the past 52 weeks, SAN's P/B has been as high as 0.66, as low as 0.37, with a median of 0.47.
Value investors will likely look at more than just these metrics, but the above data helps show that Itau Unibanco and Banco Santander are likely undervalued currently. And when considering the strength of its earnings outlook, ITUB and SAN sticks out as one of the market's strongest value stocks.
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Itau Unibanco Holding S.A. (ITUB) : Free Stock Analysis Report
Banco Santander, S.A. (SAN) : Free Stock Analysis Report
