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Is Old Second Bancorp (OSBC) Stock Undervalued Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.
Old Second Bancorp (OSBC - Free Report) is a stock many investors are watching right now. OSBC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 11.04 right now. For comparison, its industry sports an average P/E of 12.63. OSBC's Forward P/E has been as high as 15.31 and as low as 5.69, with a median of 10.50, all within the past year.
OSBC is also sporting a PEG ratio of 1.45. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. OSBC's PEG compares to its industry's average PEG of 2.17. Within the past year, OSBC's PEG has been as high as 1.49 and as low as 1.33, with a median of 1.38.
Investors should also recognize that OSBC has a P/B ratio of 0.95. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.41. Over the past year, OSBC's P/B has been as high as 1.50 and as low as 0.67, with a median of 1.32.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. OSBC has a P/S ratio of 1.71. This compares to its industry's average P/S of 1.93.
Finally, our model also underscores that OSBC has a P/CF ratio of 7.16. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.36. OSBC's P/CF has been as high as 9.65 and as low as 4.27, with a median of 8.44, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Old Second Bancorp is likely undervalued currently. And when considering the strength of its earnings outlook, OSBC sticks out at as one of the market's strongest value stocks.
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Is Old Second Bancorp (OSBC) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.
Old Second Bancorp (OSBC - Free Report) is a stock many investors are watching right now. OSBC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 11.04 right now. For comparison, its industry sports an average P/E of 12.63. OSBC's Forward P/E has been as high as 15.31 and as low as 5.69, with a median of 10.50, all within the past year.
OSBC is also sporting a PEG ratio of 1.45. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. OSBC's PEG compares to its industry's average PEG of 2.17. Within the past year, OSBC's PEG has been as high as 1.49 and as low as 1.33, with a median of 1.38.
Investors should also recognize that OSBC has a P/B ratio of 0.95. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.41. Over the past year, OSBC's P/B has been as high as 1.50 and as low as 0.67, with a median of 1.32.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. OSBC has a P/S ratio of 1.71. This compares to its industry's average P/S of 1.93.
Finally, our model also underscores that OSBC has a P/CF ratio of 7.16. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.36. OSBC's P/CF has been as high as 9.65 and as low as 4.27, with a median of 8.44, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Old Second Bancorp is likely undervalued currently. And when considering the strength of its earnings outlook, OSBC sticks out at as one of the market's strongest value stocks.