Are Investors Undervaluing Nomura (NMR) Right Now?

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.One company value investors might notice is Nomura (NMR). NMR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.22, while its industry has an average P/E of 13.54. NMR's Forward P/E has been as high as 18.79 and as low as 8.14, with a median of 9.97, all within the past year.Investors should also recognize that NMR has a P/B ratio of 0.80. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. NMR's current P/B looks attractive when compared to its industry's average P/B of 2.11. Over the past year, NMR's P/B has been as high as 0.86 and as low as 0.64, with a median of 0.75.Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. NMR has a P/S ratio of 0.72. This compares to its industry's average P/S of 2.05.Finally, investors should note that NMR has a P/CF ratio of 7.51. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.41. Over the past year, NMR's P/CF has been as high as 16.29 and as low as 6.37, with a median of 9.54.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.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks