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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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.
One company value investors might notice is First Guaranty Bancshares (FGBI - Free Report) . FGBI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.39. This compares to its industry's average Forward P/E of 12.45. Over the past 52 weeks, FGBI's Forward P/E has been as high as 11.69 and as low as 7.91, with a median of 9.15.
Investors should also recognize that FGBI has a P/B ratio of 1.25. 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 attractive against its industry's average P/B of 1.84. Within the past 52 weeks, FGBI's P/B has been as high as 1.25 and as low as 0.88, with a median of 1.05.
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. FGBI has a P/S ratio of 1.82. This compares to its industry's average P/S of 3.26.
Finally, our model also underscores that FGBI has a P/CF ratio of 7.24. 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 stock's P/CF looks attractive against its industry's average P/CF of 16.65. Over the past 52 weeks, FGBI's P/CF has been as high as 7.52 and as low as 5.86, with a median of 6.71.
Another great Banks - Southeast stock you could consider is South Plains Financial (SPFI - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
South Plains Financial also has a P/B ratio of 1.30 compared to its industry's price-to-book ratio of 1.84. Over the past year, its P/B ratio has been as high as 1.32, as low as 0.93, with a median of 1.12.
These figures are just a handful of the metrics value investors tend to look at, but they help show that First Guaranty Bancshares and South Plains Financial are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FGBI and SPFI feels like a great value stock at the moment.
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Are These Finance Stocks Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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.
One company value investors might notice is First Guaranty Bancshares (FGBI - Free Report) . FGBI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.39. This compares to its industry's average Forward P/E of 12.45. Over the past 52 weeks, FGBI's Forward P/E has been as high as 11.69 and as low as 7.91, with a median of 9.15.
Investors should also recognize that FGBI has a P/B ratio of 1.25. 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 attractive against its industry's average P/B of 1.84. Within the past 52 weeks, FGBI's P/B has been as high as 1.25 and as low as 0.88, with a median of 1.05.
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. FGBI has a P/S ratio of 1.82. This compares to its industry's average P/S of 3.26.
Finally, our model also underscores that FGBI has a P/CF ratio of 7.24. 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 stock's P/CF looks attractive against its industry's average P/CF of 16.65. Over the past 52 weeks, FGBI's P/CF has been as high as 7.52 and as low as 5.86, with a median of 6.71.
Another great Banks - Southeast stock you could consider is South Plains Financial (SPFI - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
South Plains Financial also has a P/B ratio of 1.30 compared to its industry's price-to-book ratio of 1.84. Over the past year, its P/B ratio has been as high as 1.32, as low as 0.93, with a median of 1.12.
These figures are just a handful of the metrics value investors tend to look at, but they help show that First Guaranty Bancshares and South Plains Financial are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FGBI and SPFI feels like a great value stock at the moment.