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Should Value Investors Buy Midland States Bancorp, Inc. (MSBI) Stock?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Midland States Bancorp, Inc. (MSBI - Free Report) . MSBI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 8.55. This compares to its industry's average Forward P/E of 10.12. Over the past 52 weeks, MSBI's Forward P/E has been as high as 11.65 and as low as 5.17, with a median of 9.38.
We also note that MSBI holds a PEG ratio of 1.37. 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. MSBI's PEG compares to its industry's average PEG of 1.68. Over the last 12 months, MSBI's PEG has been as high as 1.41 and as low as 1.29, with a median of 1.34.
Another notable valuation metric for MSBI is its P/B ratio of 0.55. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. MSBI's current P/B looks attractive when compared to its industry's average P/B of 0.92. Over the past 12 months, MSBI's P/B has been as high as 1.10 and as low as 0.48, with a median of 0.96.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MSBI has a P/S ratio of 1.04. This compares to its industry's average P/S of 1.86.
Finally, our model also underscores that MSBI has a P/CF ratio of 5.88. 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. MSBI's P/CF compares to its industry's average P/CF of 11.35. MSBI's P/CF has been as high as 9.08 and as low as 4.39, with a median of 7.72, all within the past year.
These are only a few of the key metrics included in Midland States Bancorp, Inc.'s strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, MSBI looks like an impressive value stock at the moment.
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Should Value Investors Buy Midland States Bancorp, Inc. (MSBI) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Midland States Bancorp, Inc. (MSBI - Free Report) . MSBI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 8.55. This compares to its industry's average Forward P/E of 10.12. Over the past 52 weeks, MSBI's Forward P/E has been as high as 11.65 and as low as 5.17, with a median of 9.38.
We also note that MSBI holds a PEG ratio of 1.37. 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. MSBI's PEG compares to its industry's average PEG of 1.68. Over the last 12 months, MSBI's PEG has been as high as 1.41 and as low as 1.29, with a median of 1.34.
Another notable valuation metric for MSBI is its P/B ratio of 0.55. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. MSBI's current P/B looks attractive when compared to its industry's average P/B of 0.92. Over the past 12 months, MSBI's P/B has been as high as 1.10 and as low as 0.48, with a median of 0.96.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MSBI has a P/S ratio of 1.04. This compares to its industry's average P/S of 1.86.
Finally, our model also underscores that MSBI has a P/CF ratio of 5.88. 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. MSBI's P/CF compares to its industry's average P/CF of 11.35. MSBI's P/CF has been as high as 9.08 and as low as 4.39, with a median of 7.72, all within the past year.
These are only a few of the key metrics included in Midland States Bancorp, Inc.'s strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, MSBI looks like an impressive value stock at the moment.