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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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is BCB Bancorp NJ (BCBP - Free Report) . BCBP is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.32, while its industry has an average P/E of 11.84. Over the last 12 months, BCBP's Forward P/E has been as high as 11.40 and as low as 7.96, with a median of 8.74.
Investors should also recognize that BCBP has a P/B ratio of 1.29. 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 1.65. BCBP's P/B has been as high as 1.32 and as low as 0.97, with a median of 1.08, 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. BCBP has a P/S ratio of 2.57. This compares to its industry's average P/S of 2.95.
Finally, investors should note that BCBP has a P/CF ratio of 8.77. 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 14.47. Over the past year, BCBP's P/CF has been as high as 11.44 and as low as 7.16, with a median of 8.18.
If you're looking for another solid Banks - Northeast value stock, take a look at Orrstown Financial Services (ORRF - Free Report) . ORRF is a # 2 (Buy) stock with a Value score of A.
Furthermore, Orrstown Financial Services holds a P/B ratio of 0.95 and its industry's price-to-book ratio is 1.65. ORRF's P/B has been as high as 1.14, as low as 0.93, with a median of 1.01 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that BCB Bancorp NJ and Orrstown Financial Services are likely undervalued currently. And when considering the strength of its earnings outlook, BCBP and ORRF sticks out as one of the market's strongest value stocks.
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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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is BCB Bancorp NJ (BCBP - Free Report) . BCBP is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.32, while its industry has an average P/E of 11.84. Over the last 12 months, BCBP's Forward P/E has been as high as 11.40 and as low as 7.96, with a median of 8.74.
Investors should also recognize that BCBP has a P/B ratio of 1.29. 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 1.65. BCBP's P/B has been as high as 1.32 and as low as 0.97, with a median of 1.08, 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. BCBP has a P/S ratio of 2.57. This compares to its industry's average P/S of 2.95.
Finally, investors should note that BCBP has a P/CF ratio of 8.77. 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 14.47. Over the past year, BCBP's P/CF has been as high as 11.44 and as low as 7.16, with a median of 8.18.
If you're looking for another solid Banks - Northeast value stock, take a look at Orrstown Financial Services (ORRF - Free Report) . ORRF is a # 2 (Buy) stock with a Value score of A.
Furthermore, Orrstown Financial Services holds a P/B ratio of 0.95 and its industry's price-to-book ratio is 1.65. ORRF's P/B has been as high as 1.14, as low as 0.93, with a median of 1.01 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that BCB Bancorp NJ and Orrstown Financial Services are likely undervalued currently. And when considering the strength of its earnings outlook, BCBP and ORRF sticks out as one of the market's strongest value stocks.