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Are These Finance Stocks a Great Value Stocks 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.
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.
Capital Bancorp (CBNK - Free Report) is a stock many investors are watching right now. CBNK is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.15 right now. For comparison, its industry sports an average P/E of 12.61. Over the last 12 months, CBNK's Forward P/E has been as high as 13.32 and as low as 9.07, with a median of 10.66.
Another notable valuation metric for CBNK is its P/B ratio of 1.81. 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 1.89. CBNK's P/B has been as high as 2.04 and as low as 1.25, with a median of 1.79, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CBNK has a P/S ratio of 1.97. This compares to its industry's average P/S of 2.94.
Finally, we should also recognize that CBNK has a P/CF ratio of 8.41. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 18.28. Within the past 12 months, CBNK's P/CF has been as high as 10.10 and as low as 6.95, with a median of 8.58.
Investors could also keep in mind Midland States Bancorp (MSBI - Free Report) , an Banks - Northeast stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Midland States Bancorp also has a P/B ratio of 1 compared to its industry's price-to-book ratio of 1.89. Over the past year, its P/B ratio has been as high as 1.06, as low as 0.74, with a median of 0.88.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Capital Bancorp and Midland States Bancorp are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CBNK and MSBI feels like a great value stock at the moment.
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Are These Finance Stocks a Great Value Stocks 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.
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.
Capital Bancorp (CBNK - Free Report) is a stock many investors are watching right now. CBNK is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.15 right now. For comparison, its industry sports an average P/E of 12.61. Over the last 12 months, CBNK's Forward P/E has been as high as 13.32 and as low as 9.07, with a median of 10.66.
Another notable valuation metric for CBNK is its P/B ratio of 1.81. 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 1.89. CBNK's P/B has been as high as 2.04 and as low as 1.25, with a median of 1.79, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CBNK has a P/S ratio of 1.97. This compares to its industry's average P/S of 2.94.
Finally, we should also recognize that CBNK has a P/CF ratio of 8.41. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 18.28. Within the past 12 months, CBNK's P/CF has been as high as 10.10 and as low as 6.95, with a median of 8.58.
Investors could also keep in mind Midland States Bancorp (MSBI - Free Report) , an Banks - Northeast stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Midland States Bancorp also has a P/B ratio of 1 compared to its industry's price-to-book ratio of 1.89. Over the past year, its P/B ratio has been as high as 1.06, as low as 0.74, with a median of 0.88.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Capital Bancorp and Midland States Bancorp are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CBNK and MSBI feels like a great value stock at the moment.