Wednesday, July 11, 2012

4 Financial Stocks Trading Inexpensively Despite Analyst Recommendation


When analysts rate a company's stock as a "Buy," it's a sign that there are a variety of things that the company is doing right. It also means there is confidence that the stock is going to increase in value. Today we focus on financial stocks sporting positive analyst ratings, but that also appear undervalued from a price-multiple standpoint. We came up with a rather diverse list of financial companies, but we think you'll find it interesting.The Price/Sales ratio is a price-multiple valuation metric used to help identify if a firm is cheap by its twelve month trailing sales numbers. In the most basic terms it let's an investor know how much the investment community is willing to pay for every dollars worth of sales. A firm with a P/S ratio of one or lower would be viewed as cheap because investors are paying $1 or less for every
... Read the rest at SeekingAlpha.com

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