Is Banco Do Brasil (BDORY) 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 latest value, growth, and momentum trends to underscore 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.
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 Banco Do Brasil (BDORY). BDORY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 2.95 right now. For comparison, its industry sports an average P/E of 7.77. BDORY's Forward P/E has been as high as 12.78 and as low as 2.83, with a median of 3.55, all within the past year.
We should also highlight that BDORY has a P/B ratio of 0.54. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.45. BDORY's P/B has been as high as 0.80 and as low as 0.53, with a median of 0.67, over the past year.
These are only a few of the key metrics included in Banco Do Brasil'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, BDORY looks like an impressive value stock at the moment.
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Banco Do Brasil SA (BDORY) : Free Stock Analysis Report
