CIB or ITUB: Which Is the Better Value Stock Right Now?

Core Viewpoint - Investors in the Banks - Foreign sector should consider Bancolombia (CIB) and Banco Itau (ITUB) for potential undervalued stock opportunities [1] Group 1: Zacks Rank and Earnings Outlook - Bancolombia has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Banco Itau has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank emphasizes companies with positive earnings estimate revisions, suggesting that CIB is likely experiencing a more favorable earnings outlook [3] Group 2: Valuation Metrics - CIB has a forward P/E ratio of 6.55, significantly lower than ITUB's forward P/E of 9.53, indicating that CIB may be undervalued [5] - CIB's PEG ratio is 0.92, while ITUB's PEG ratio is 1.17, suggesting that CIB's stock is expected to grow at a better rate relative to its price [5] - CIB's P/B ratio is 1.19 compared to ITUB's P/B of 1.99, further supporting the notion that CIB is undervalued [6] Group 3: Value Grades - CIB has earned a Value grade of A, while ITUB has a Value grade of D, indicating a stronger valuation profile for CIB [6] - The combination of Zacks Rank and Style Scores suggests that value investors may prefer CIB over ITUB at this time [6]