Are Investors Undervaluing Synchrony Financial (SYF) 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.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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.One company to watch right now is Synchrony Financial (SYF). SYF is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 8.65, while its industry has an average P/E of 23.78. Over the last 12 months, SYF's Forward P/E has been as high as 10.68 and as low as 5.52, with a median of 8.41. Investors should also note that SYF holds a PEG ratio of 0.72. 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. SYF's PEG compares to its industry's average PEG of 1.28. SYF's PEG has been as high as 1.31 and as low as 0.48, with a median of 0.70, all within the past year. Investors should also recognize that SYF has a P/B ratio of 1.81. 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. SYF's current P/B looks attractive when compared to its industry's average P/B of 3.51. Within the past 52 weeks, SYF's P/B has been as high as 1.82 and as low as 1.09, with a median of 1.62.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. SYF has a P/S ratio of 1.18. This compares to its industry's average P/S of 2.22.Finally, we should also recognize that SYF has a P/CF ratio of 7.69. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. SYF's current P/CF looks attractive when compared to its industry's average P/CF of 18.95. SYF's P/CF has been as high as 7.72 and as low as 4.94, with a median of 6.75, all within the past year.Value investors will likely look at more than just these metrics, but the above data helps show that Synchrony Financial is likely undervalued currently. And when considering the strength of its earnings outlook, SYF sticks out as one of the market's strongest value stocks.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>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 Synchrony Financial (SYF): 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