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Are Investors Undervaluing These Finance Stocks Right Now?
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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 (MSBI - Free Report) . MSBI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 8.52, which compares to its industry's average of 13.84. Over the past year, MSBI's Forward P/E has been as high as 9.77 and as low as 7.15, with a median of 8.16.
Investors should also recognize that MSBI has a P/B ratio of 0.90. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.88. MSBI's P/B has been as high as 1.06 and as low as 0.67, with a median of 0.87, over the past year.
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. MSBI has a P/S ratio of 1.96. This compares to its industry's average P/S of 3.08.
Finally, investors should note that MSBI has a P/CF ratio of 6.82. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 18.98. Over the past 52 weeks, MSBI's P/CF has been as high as 14.64 and as low as 6.01, with a median of 8.44.
If you're looking for another solid Banks - Northeast value stock, take a look at The Community Financial . TCFC is a # 2 (Buy) stock with a Value score of A.
Furthermore, The Community Financial holds a P/B ratio of 1.11 and its industry's price-to-book ratio is 1.88. TCFC's P/B has been as high as 1.13, as low as 0.71, with a median of 1.04 over the past 12 months.
These are only a few of the key metrics included in Midland States Bancorp and The Community Financial strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, MSBI and TCFC look like an impressive value stock at the moment.
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Are Investors Undervaluing These Finance Stocks Right Now?
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 (MSBI - Free Report) . MSBI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 8.52, which compares to its industry's average of 13.84. Over the past year, MSBI's Forward P/E has been as high as 9.77 and as low as 7.15, with a median of 8.16.
Investors should also recognize that MSBI has a P/B ratio of 0.90. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.88. MSBI's P/B has been as high as 1.06 and as low as 0.67, with a median of 0.87, over the past year.
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. MSBI has a P/S ratio of 1.96. This compares to its industry's average P/S of 3.08.
Finally, investors should note that MSBI has a P/CF ratio of 6.82. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 18.98. Over the past 52 weeks, MSBI's P/CF has been as high as 14.64 and as low as 6.01, with a median of 8.44.
If you're looking for another solid Banks - Northeast value stock, take a look at The Community Financial . TCFC is a # 2 (Buy) stock with a Value score of A.
Furthermore, The Community Financial holds a P/B ratio of 1.11 and its industry's price-to-book ratio is 1.88. TCFC's P/B has been as high as 1.13, as low as 0.71, with a median of 1.04 over the past 12 months.
These are only a few of the key metrics included in Midland States Bancorp and The Community Financial strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, MSBI and TCFC look like an impressive value stock at the moment.