Value Investors Focus on Banks

Bank stocks are amongst the cheapest companies in the world, trading well below their true worth, and value fund managers continue to find opportunities in the sector

David Brenchley 6 February, 2019 | 9:53AM
Facebook Twitter LinkedIn

Canary Wharf, Barclays, HSBC, Lloyds, RBS, UK stocks, banks

Value investing comprises looking for companies believed to be undervalued by the market. Value stocks tend to be those with low price/book values (P/B), low 12-month forward price/earnings multiples (P/E), and high dividend yields.

The sub-sector that captures the most value stocks today is banks. More than a quarter of the MSCI World Value Weighted index, which emphasises the stocks with the lowest valuations, are financial companies.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Bank of America Corp46.37 USD0.00Rating
Bank of Kyoto Ltd5,300.00 JPY0.00
Barclays PLC197.82 GBP0.00Rating
Citigroup Inc72.29 USD0.00Rating
Goldman Sachs Group Inc406.07 USD0.00Rating
HSBC Holdings PLC434.20 GBP0.00Rating
JPMorgan Chase & Co166.61 USD0.00Rating
Keystone Positive Change Investment Ord326.05 GBP1.26
Lloyds Banking Group PLC49.12 GBP0.00Rating
NatWest Group PLC233.90 GBP0.00Rating
Premier Miton European Opports B Acc329.20 GBP0.09Rating
Ringkjoebing Landbobank A/S Bearer and/or registered Shs823.00 DKK0.00
Sbanken ASA101.20 NOK0.00
Scottish Investment Trust Ord756.01 GBP0.27Rating
Sumitomo Mitsui Financial Group Inc3,867.00 JPY0.00Rating
Temple Bar Ord1,106.03 GBP0.55Rating
TM CRUX UK Core Fund B Inc199.94 GBP0.56Rating
Wells Fargo & Co48.38 USD0.00Rating

About Author

David Brenchley

David Brenchley  is a Reporter for