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Should Value Investors Buy Societe Generale Group (SCGLY) Stock?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.

Societe Generale Group (SCGLY - Free Report) is a stock many investors are watching right now. SCGLY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 8.03, which compares to its industry's average of 9.38. Over the past 52 weeks, SCGLY's Forward P/E has been as high as 8.03 and as low as 4.01, with a median of 4.97.

SCGLY is also sporting a PEG ratio of 0.29. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SCGLY's industry has an average PEG of 0.74 right now. SCGLY's PEG has been as high as 0.29 and as low as 0.08, with a median of 0.10, all within the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SCGLY has a P/S ratio of 1.49. This compares to its industry's average P/S of 1.52.

Finally, we should also recognize that SCGLY has a P/CF ratio of 9. 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 15.02. Over the past year, SCGLY's P/CF has been as high as 12.73 and as low as 5.77, with a median of 7.98.

These are just a handful of the figures considered in Societe Generale Group'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 SCGLY is an impressive value stock right now.


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