Is Raymond James Financial (RJF) Stock Undervalued 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 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, 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 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.
Raymond James Financial (RJF) is a stock many investors are watching right now. RJF is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 13.53, while its industry has an average P/E of 13.66. Over the past year, RJF's Forward P/E has been as high as 15.83 and as low as 12.99, with a median of 14.22.
Another notable valuation metric for RJF is its P/B ratio of 2.35. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. RJF's current P/B looks attractive when compared to its industry's average P/B of 2.61. Within the past 52 weeks, RJF's P/B has been as high as 2.54 and as low as 1.74, with a median of 2.33.
Finally, our model also underscores that RJF has a P/CF ratio of 12.94. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. RJF's current P/CF looks attractive when compared to its industry's average P/CF of 17.37. Over the past year, RJF's P/CF has been as high as 16.75 and as low as 12.59, with a median of 14.43.
These are just a handful of the figures considered in Raymond James 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 RJF is an impressive value stock right now.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Raymond James Financial, Inc. (RJF): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research