Friday, June 29, 2012

5 Large Cap Financials Trading For Cheap Despite Analyst Backing


When analysts rate a company's stock as a 'Buy' or 'Strong Buy', it shows that there are a number of things that the company is doing right. It also means there is high confidence that the stock is going to grow in value. Today we focus on financial stocks with mid to high analyst ratings, but that also look undervalued from a price-multiple standpoint. We came up with an interesting list; please tell us what you think in the comments section.The Price/Cash Flow ratio is a price-multiple valuation metric that also measures a firm's future financial health. An advantage of using cash flow is that it removes non-cash factors, which helps provide a clearer picture of how much money the firm is taking in from a valuation standpoint.Price/Cash Flow Ratio = Current Stock Price/Cash Flow Per ShareThe Price/Earnings ratio is one of the most commonly used price-multiple
... Read the rest at SeekingAlpha.com

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