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

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.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Bank of America Corporation22.77 USD0.00
Bank of Kyoto Ltd3,845.00 JPY0.00
Barclays PLC111.96 GBP0.00
Citigroup Inc49.45 USD0.00
Goldman Sachs Group Inc196.83 USD0.00
HSBC Holdings PLC373.30 GBP0.00
JPMorgan Chase & Co91.28 USD0.00
Keystone Ord246.00 GBP0.00
LF Miton European Opportunities B Acc241.37 GBP-0.07
Liontrust Macro Equity Income I Acc301.12 GBP-0.58
Lloyds Banking Group PLC29.74 GBP0.00
Ringkjoebing Landbobank A/S Bearer and/or registered Shs489.00 DKK0.00
Sbanken ASA63.90 NOK0.00
Scottish Investment Trust Ord731.05 GBP-0.54
Sumitomo Mitsui Financial Group Inc3,015.00 JPY0.00
Temple Bar Ord752.04 GBP-0.26
The Royal Bank of Scotland Group PLC118.05 GBP0.00
TM CRUX UK B Inc169.66 GBP-0.60
Wells Fargo & Co24.04 USD0.00

About Author

David Brenchley

David Brenchley  is a Reporter for Morningstar.co.uk

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