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Should Value Investors Buy Manulife Financial Corp (MFC) Stock?

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.

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.

Manulife Financial Corp (MFC) is a stock many investors are watching right now. MFC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

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Another valuation metric that we should highlight is MFC's P/B ratio of 1.43. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.85. MFC's P/B has been as high as 1.45 and as low as 0.99, with a median of 1.15, over the past year.

Finally, investors will want to recognize that MFC has a P/CF ratio of 8.78. 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. MFC's P/CF compares to its industry's average P/CF of 12.55. Over the past 52 weeks, MFC's P/CF has been as high as 8.90 and as low as 5.16, with a median of 7.01.

These are only a few of the key metrics included in Manulife Financial Corp'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, MFC looks like an impressive value stock at the moment.

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