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Are Investors Undervaluing Intercorp Financial Services (IFS) Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

Intercorp Financial Services (IFS - Free Report) is a stock many investors are watching right now. IFS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 7, while its industry has an average P/E of 16.17. Over the last 12 months, IFS's Forward P/E has been as high as 10.57 and as low as 5.61, with a median of 6.41.

Investors should also recognize that IFS has a P/B ratio of 1.21. 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 attractive against its industry's average P/B of 3.11. Within the past 52 weeks, IFS's P/B has been as high as 1.30 and as low as 0.89, with a median of 1.10.

Finally, investors should note that IFS has a P/CF ratio of 8.52. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 18.14. IFS's P/CF has been as high as 8.96 and as low as 6.73, with a median of 7.78, all within the past year.

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


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