Here's Why Fifth Third Bancorp (FITB) is a Strong Value Stock
ZACKS·2025-12-15 15:41

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, helping investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum characteristics, with higher scores indicating a better chance of outperforming the market [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Value Score - The Value Style Score identifies stocks that are undervalued based on financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, appealing to value investors [3] Growth Score - The Growth Style Score assesses a company's financial health and future growth potential by analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Style Score focuses on stocks with upward or downward price trends, utilizing recent price changes and earnings estimate revisions to identify favorable buying opportunities [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator that highlights stocks with attractive value, strong growth forecasts, and promising momentum [6] Zacks Rank Integration - The Zacks Rank uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.81% since 1988, significantly outperforming the S&P 500 [7] - Investors are encouraged to consider stocks with a Zacks Rank of 1 or 2 alongside Style Scores of A or B for optimal investment success [9] Stock Highlight: Fifth Third Bancorp - Fifth Third Bancorp, with assets of $212.9 billion as of September 30, 2025, operates 1,102 banking centers across 11 states [11] - The company holds a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating solid performance potential [11] - It has a Value Style Score of B, supported by a forward P/E ratio of 13.64, making it attractive to value investors [12] - Recent upward revisions in earnings estimates by seven analysts have increased the Zacks Consensus Estimate for fiscal 2025 by $0.05 to $3.53 per share, with an average earnings surprise of +4.5% [12]