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Is BCB Bancorp NJ (BCBP) Stock Undervalued Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 BCB Bancorp NJ (BCBP - Free Report) . BCBP 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 9.15. This compares to its industry's average Forward P/E of 10.91. Over the past 52 weeks, BCBP's Forward P/E has been as high as 10.41 and as low as 7.96, with a median of 8.74.

Another valuation metric that we should highlight is BCBP's P/B ratio of 1.28. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.81. Over the past 12 months, BCBP's P/B has been as high as 1.32 and as low as 0.97, with a median of 1.09.

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 2.65. This compares to its industry's average P/S of 2.93.

Finally, we should also recognize that BCBP has a P/CF ratio of 8.71. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 14.19. Over the past year, BCBP's P/CF has been as high as 9.69 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 CF Bankshares (CFBK - Free Report) . CFBK is a # 2 (Buy) stock with a Value score of A.

Additionally, CF Bankshares has a P/B ratio of 0.93 while its industry's price-to-book ratio sits at 1.81. For CFBK, this valuation metric has been as high as 1, as low as 0.83, with a median of 0.89 over the past year.

These are only a few of the key metrics included in BCB Bancorp NJ and CF Bankshares strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BCBP and CFBK look like an impressive value stock at the moment.


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BCB Bancorp, Inc. (NJ) (BCBP) - free report >>

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