Is Bankinter (BKNIY) Stock Undervalued Right Now?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 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 stock to keep an eye on is Bankinter (BKNIY). BKNIY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Another notable valuation metric for BKNIY is its P/B ratio of 0.98. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. BKNIY's current P/B looks attractive when compared to its industry's average P/B of 1.30. Within the past 52 weeks, BKNIY's P/B has been as high as 1.08 and as low as 0.75, with a median of 0.91.

Finally, investors should note that BKNIY has a P/CF ratio of 3.23. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. BKNIY's current P/CF looks attractive when compared to its industry's average P/CF of 11.96. Within the past 12 months, BKNIY's P/CF has been as high as 3.57 and as low as 2.51, with a median of 3.09.

Commerzbank (CRZBY) may be another strong Banks - Foreign stock to add to your shortlist. CRZBY is a # 2 (Buy) stock with a Value grade of A.

Commerzbank also has a P/B ratio of 0.29 compared to its industry's price-to-book ratio of 1.30. Over the past year, its P/B ratio has been as high as 0.37, as low as 0.22, with a median of 0.27.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Bankinter and Commerzbank are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BKNIY and CRZBY feels like a great value stock at the moment.

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Bankinter SA (BKNIY) : Free Stock Analysis Report
 
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