Are Investors Undervaluing Nomura (NMR) Right Now?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.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.One stock to keep an eye on is Nomura (NMR). NMR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 9.04, which compares to its industry's average of 13.77. Over the last 12 months, NMR's Forward P/E has been as high as 18.79 and as low as 8.63, with a median of 13.14.NMR is also sporting a PEG ratio of 0.40. 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. NMR's PEG compares to its industry's average PEG of 0.98. NMR's PEG has been as high as 0.58 and as low as 0.35, with a median of 0.42, all within the past year.Another valuation metric that we should highlight is NMR's P/B ratio of 0.75. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.96. Within the past 52 weeks, NMR's P/B has been as high as 0.86 and as low as 0.57, with a median of 0.74.Finally, our model also underscores that NMR has a P/CF ratio of 7.76. 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. NMR's current P/CF looks attractive when compared to its industry's average P/CF of 16.05. NMR's P/CF has been as high as 16.29 and as low as 6.85, with a median of 10.85, all within the past year.These are only a few of the key metrics included in Nomura's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, NMR looks like an impressive value stock at the moment.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Nomura Holdings Inc ADR (NMR): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks