Are Investors Undervaluing Macro Bank (BMA) 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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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.

Macro Bank (BMA) is a stock many investors are watching right now. BMA is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 5.21. This compares to its industry's average Forward P/E of 11.30. Over the past 52 weeks, BMA's Forward P/E has been as high as 13.85 and as low as 4.76, with a median of 8.22.

Investors should also note that BMA holds a PEG ratio of 0.38. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BMA's PEG compares to its industry's average PEG of 0.75. BMA's PEG has been as high as 0.46 and as low as 0.21, with a median of 0.29, all within the past year.

Value investors also use the P/S ratio. The P/S ratio 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. BMA has a P/S ratio of 0.99. This compares to its industry's average P/S of 2.2.

These are just a handful of the figures considered in Macro Bank'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 BMA is an impressive value stock right now.

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This article originally published on Zacks Investment Research (zacks.com).

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