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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.
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.
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 company value investors might notice is First Business Financial Services (FBIZ - Free Report) . FBIZ is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.18, which compares to its industry's average of 12.95. Over the past 52 weeks, FBIZ's Forward P/E has been as high as 10.61 and as low as 7.18, with a median of 8.55.
Investors should also recognize that FBIZ has a P/B ratio of 1.08. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.11. Over the past year, FBIZ's P/B has been as high as 1.16 and as low as 0.75, with a median of 1.07.
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. FBIZ has a P/S ratio of 1.98. This compares to its industry's average P/S of 3.09.
Finally, our model also underscores that FBIZ has a P/CF ratio of 6.58. 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. FBIZ's P/CF compares to its industry's average P/CF of 15.56. Within the past 12 months, FBIZ's P/CF has been as high as 11.23 and as low as 6.34, with a median of 7.52.
MidWestOne Financial Group (MOFG - Free Report) may be another strong Banks - Midwest stock to add to your shortlist. MOFG is a # 2 (Buy) stock with a Value grade of A.
MidWestOne Financial Group sports a P/B ratio of 0.96 as well; this compares to its industry's price-to-book ratio of 2.11. In the past 52 weeks, MOFG's P/B has been as high as 1.03, as low as 0.77, with a median of 0.92.
These figures are just a handful of the metrics value investors tend to look at, but they help show that First Business Financial Services and MidWestOne Financial Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FBIZ and MOFG feels like a great value stock at the moment.
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Should Value Investors Buy These Finance Stocks?
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.
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.
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 company value investors might notice is First Business Financial Services (FBIZ - Free Report) . FBIZ is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.18, which compares to its industry's average of 12.95. Over the past 52 weeks, FBIZ's Forward P/E has been as high as 10.61 and as low as 7.18, with a median of 8.55.
Investors should also recognize that FBIZ has a P/B ratio of 1.08. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.11. Over the past year, FBIZ's P/B has been as high as 1.16 and as low as 0.75, with a median of 1.07.
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. FBIZ has a P/S ratio of 1.98. This compares to its industry's average P/S of 3.09.
Finally, our model also underscores that FBIZ has a P/CF ratio of 6.58. 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. FBIZ's P/CF compares to its industry's average P/CF of 15.56. Within the past 12 months, FBIZ's P/CF has been as high as 11.23 and as low as 6.34, with a median of 7.52.
MidWestOne Financial Group (MOFG - Free Report) may be another strong Banks - Midwest stock to add to your shortlist. MOFG is a # 2 (Buy) stock with a Value grade of A.
MidWestOne Financial Group sports a P/B ratio of 0.96 as well; this compares to its industry's price-to-book ratio of 2.11. In the past 52 weeks, MOFG's P/B has been as high as 1.03, as low as 0.77, with a median of 0.92.
These figures are just a handful of the metrics value investors tend to look at, but they help show that First Business Financial Services and MidWestOne Financial Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FBIZ and MOFG feels like a great value stock at the moment.