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Are Investors Undervaluing Australia & New Zealand Banking (ANZBY) Right Now?

Zacks

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system’s “Value” category. Stocks with “A” grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is Australia & New Zealand Banking (ANZBY). ANZBY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.


Investors should also note that ANZBY holds a PEG ratio of 1. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. ANZBY’s industry currently sports an average PEG of 1.07. Over the last 12 months, ANZBY’s PEG has been as high as 2.72 and as low as 0.86, with a median of 1.88.

Another valuation metric that we should highlight is ANZBY’s 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 company’s current P/B looks solid when compared to its industry’s average P/B of 1.29. Over the past year, ANZBY’s P/B has been as high as 1.48 and as low as 1.03, with a median of 1.27.

These are just a handful of the figures considered in Australia & New Zealand Banking’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 ANZBY is an impressive value stock right now.


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