Are Investors Undervaluing Jefferies (JEF) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Jefferies (JEF). JEF 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 9.61, while its industry has an average P/E of 10.12. Over the past year, JEF's Forward P/E has been as high as 19.54 and as low as 9.27, with a median of 10.24.

JEF is also sporting a PEG ratio of 1.01. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. JEF's PEG compares to its industry's average PEG of 1.05. Over the past 52 weeks, JEF's PEG has been as high as 1.09 and as low as 1, with a median of 1.03.

We should also highlight that JEF has a P/B ratio of 0.81. 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. JEF's current P/B looks attractive when compared to its industry's average P/B of 1.98. Within the past 52 weeks, JEF's P/B has been as high as 0.98 and as low as 0.75, with a median of 0.84.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Jefferies is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, JEF feels like a great value stock at the moment.

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