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Should Value Investors Buy Independent Bank (IBCP) Stock?
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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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Independent Bank (IBCP - Free Report) is a stock many investors are watching right now. IBCP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 9.99, while its industry has an average P/E of 11.89. Over the past 52 weeks, IBCP's Forward P/E has been as high as 12.16 and as low as 8.25, with a median of 10.10.
Another notable valuation metric for IBCP is its P/B ratio of 1.20. 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. IBCP's current P/B looks attractive when compared to its industry's average P/B of 2.06. Over the past 12 months, IBCP's P/B has been as high as 1.38 and as low as 1.08, with a median of 1.25.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. IBCP has a P/S ratio of 2.18. This compares to its industry's average P/S of 3.18.
Finally, investors will want to recognize that IBCP has a P/CF ratio of 6.45. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. IBCP's P/CF compares to its industry's average P/CF of 21.53. Over the past 52 weeks, IBCP's P/CF has been as high as 8.03 and as low as 5.26, with a median of 6.14.
These are only a few of the key metrics included in Independent Bank's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, IBCP looks like an impressive value stock at the moment.
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Should Value Investors Buy Independent Bank (IBCP) Stock?
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Independent Bank (IBCP - Free Report) is a stock many investors are watching right now. IBCP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 9.99, while its industry has an average P/E of 11.89. Over the past 52 weeks, IBCP's Forward P/E has been as high as 12.16 and as low as 8.25, with a median of 10.10.
Another notable valuation metric for IBCP is its P/B ratio of 1.20. 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. IBCP's current P/B looks attractive when compared to its industry's average P/B of 2.06. Over the past 12 months, IBCP's P/B has been as high as 1.38 and as low as 1.08, with a median of 1.25.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. IBCP has a P/S ratio of 2.18. This compares to its industry's average P/S of 3.18.
Finally, investors will want to recognize that IBCP has a P/CF ratio of 6.45. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. IBCP's P/CF compares to its industry's average P/CF of 21.53. Over the past 52 weeks, IBCP's P/CF has been as high as 8.03 and as low as 5.26, with a median of 6.14.
These are only a few of the key metrics included in Independent Bank's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, IBCP looks like an impressive value stock at the moment.