Should Value Investors Buy Deutsche Bank (DB) Stock? (2024)
Zacks Equity Research
·2-min read
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Deutsche Bank (DB) is a stock many investors are watching right now. DB is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 5.97, while its industry has an average P/E of 8.18. Over the past 52 weeks, DB's Forward P/E has been as high as 6.50 and as low as 4.74, with a median of 5.34.
Investors should also note that DB holds a PEG ratio of 0.75. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DB's industry currently sports an average PEG of 0.80. Within the past year, DB's PEG has been as high as 0.99 and as low as 0.56, with a median of 0.67.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DB has a P/S ratio of 0.44. This compares to its industry's average P/S of 1.22.
These are just a handful of the figures considered in Deutsche Bank's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that DB is an impressive value stock right now.
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Deutsche Bank Ag has 16.67% upside potential, based on the analysts' average price target. Is DB a Buy, Sell or Hold? Deutsche Bank Ag has a consensus rating of Moderate Buy which is based on 8 buy ratings, 4 hold ratings and 1 sell ratings.
Deutsche Bank ranked no.1 in 17 categories in the 2024 Euromoney Trade Finance Survey, up from 14 in 2023, including Best Trade Finance Bank in Germany for the 12th year running and Best Trade Finance Bank in Western Europe for the 7th consecutive year.
Deutsche Bank is your prime partner for certificates, structured notes, funds and warrants, investors can access numerous markets and select from a range of risk-optimized structures.
What percentage of Deutsche Bank Ag (DB) stock is held by retail investors? According to the latest TipRanks data, approximately 69.64% of Deutsche Bank Ag (DB) stock is held by retail investors. Who owns the most shares of Deutsche Bank Ag (DB)? AQR Funds owns the most shares of Deutsche Bank Ag (DB).
Is Deutsche Post a Buy, Sell or Hold? Deutsche Post has a consensus rating of Moderate Buy, which is based on 7 buy ratings, 3 hold ratings and 1 sell ratings.
Revenues at its investment bank increased 13% to 3 billion euros, following a 9% slump through full-year 2023 which had dragged down overall profit. The performance restores the division as Deutsche Bank's highest-earning unit on growth in financing and credit trading revenue.
Deutsche Bank's set-up includes four divisions that are well-positioned to grow: a leading European Corporate Bank based in Europe's largest economy, the Investment Bank focussing on its traditional strengths in financing, advisory, fixed income and currencies.
In news on major German stocks, shares of Deutsche Post AG (DE:DHL) (or DHL Group) fell 7% as of writing after the company reported a 25% slump in its EBIT (earnings before interest and tax) to €6.3 billion in 2023.
DB implied volatility (IV) is 24.8, which is in the 22% percentile rank. This means that 22% of the time the IV was lower in the last year than the current level. The current IV (24.8) is 5.2% above its 20 day moving average (23.6) indicating implied volatility is trending higher.
DB is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 5.97, while its industry has an average P/E of 8.18.
Goldman Sachs scored higher in 2 areas: Compensation & Benefits and Career opportunities. Deutsche Bank scored higher in 8 areas: Overall rating, Culture and values, Diversity and inclusion, Work-life balance, Senior management, CEO approval, Recommend to a friend and Positive Business Outlook.
Deutsche Bank scored higher in 9 areas: Overall rating, Culture and values, Diversity and inclusion, Work-life balance, Senior management, Compensation & Benefits, Career opportunities, Recommend to a friend and Positive Business Outlook. UBS scored higher in 1 area: CEO approval.
Investment Banking employees have rated Deutsche Bank with 4.0 out of 5 stars, based on 162 company reviews on Glassdoor. This indicates that most Investment Banking professionals have a good working experience there.
Analysts point out that Goldman and Deutsche Bank share similar return on RWA numbers, but that Goldman has a much better return on leverage exposure. Analysts also like that Goldman has taken steps in recent years to reduce total leverage without negatively impacting client revenues.
Germany is consistently ranked as one of the most attractive investment destinations based on its stable legal environment, reliable infrastructure, highly skilled workforce, positive social climate, and world-class research and development.
Introduction: My name is Terence Hammes MD, I am a inexpensive, energetic, jolly, faithful, cheerful, proud, rich person who loves writing and wants to share my knowledge and understanding with you.
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