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Should Value Investors Buy FS Bancorp (FSBW) Stock?
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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is FS Bancorp (FSBW - Free Report) . FSBW is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 9.14, which compares to its industry's average of 13.63. Over the last 12 months, FSBW's Forward P/E has been as high as 11.62 and as low as 8.13, with a median of 10.02.
Investors should also recognize that FSBW has a P/B ratio of 1.07. 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. FSBW's current P/B looks attractive when compared to its industry's average P/B of 1.92. FSBW's P/B has been as high as 1.35 and as low as 1.04, with a median of 1.19, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. FSBW has a P/S ratio of 1.91. This compares to its industry's average P/S of 3.37.
Finally, investors should note that FSBW has a P/CF ratio of 4.94. 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. FSBW's P/CF compares to its industry's average P/CF of 12.45. Over the past 52 weeks, FSBW's P/CF has been as high as 6.03 and as low as 4.43, with a median of 5.04.
Value investors will likely look at more than just these metrics, but the above data helps show that FS Bancorp is likely undervalued currently. And when considering the strength of its earnings outlook, FSBW sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy FS Bancorp (FSBW) Stock?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is FS Bancorp (FSBW - Free Report) . FSBW is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 9.14, which compares to its industry's average of 13.63. Over the last 12 months, FSBW's Forward P/E has been as high as 11.62 and as low as 8.13, with a median of 10.02.
Investors should also recognize that FSBW has a P/B ratio of 1.07. 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. FSBW's current P/B looks attractive when compared to its industry's average P/B of 1.92. FSBW's P/B has been as high as 1.35 and as low as 1.04, with a median of 1.19, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. FSBW has a P/S ratio of 1.91. This compares to its industry's average P/S of 3.37.
Finally, investors should note that FSBW has a P/CF ratio of 4.94. 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. FSBW's P/CF compares to its industry's average P/CF of 12.45. Over the past 52 weeks, FSBW's P/CF has been as high as 6.03 and as low as 4.43, with a median of 5.04.
Value investors will likely look at more than just these metrics, but the above data helps show that FS Bancorp is likely undervalued currently. And when considering the strength of its earnings outlook, FSBW sticks out at as one of the market's strongest value stocks.