Are Investors Undervaluing Raymond James Financial (RJF) 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…
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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.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 stock to keep an eye on is Raymond James Financial (RJF - Free Report) . RJF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
The stock holds a P/E ratio of 11.26, while its industry has an average P/E of 12.17. Over the past year, RJF's Forward P/E has been as high as 15.24 and as low as 9.49, with a median of 11.85.Investors should also recognize that RJF has a P/B ratio of 2.46. 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.
This stock's P/B looks attractive against its industry's average P/B of 2.82. Over the past 12 months, RJF's P/B has been as high as 2.87 and as low as 1.94, with a median of 2.43.Finally, we should also recognize that RJF has a P/CF ratio of 13.96. 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.
This stock's P/CF looks attractive against its industry's average P/CF of 16.98. Over the past 52 weeks, RJF's P/CF has been as high as 16.31 and as low as 10.91, with a median of 13.40.Value investors will likely look at more than just these metrics, but the above data helps show that Raymond James Financial is likely undervalued currently. And when considering the strength of its earnings outlook, RJF sticks out at as one of the market's strongest value stocks.