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Is Capital Bancorp (CBNK) a Great Value Stock 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 Capital Bancorp (CBNK - Free Report) . CBNK is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 7.94. This compares to its industry's average Forward P/E of 9.79. Over the past year, CBNK's Forward P/E has been as high as 13.32 and as low as 7.93, with a median of 10.29.

Another valuation metric that we should highlight is CBNK's P/B ratio of 1.59. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.67. Over the past 12 months, CBNK's P/B has been as high as 2.04 and as low as 1.50, with a median of 1.78.

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. CBNK has a P/S ratio of 1.78. This compares to its industry's average P/S of 2.75.

Finally, investors should note that CBNK has a P/CF ratio of 7.50. 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 14.47. Over the past year, CBNK's P/CF has been as high as 10.03 and as low as 6.95, with a median of 8.49.

Investors could also keep in mind Financial Institutions (FISI - Free Report) , an Banks - Northeast stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Additionally, Financial Institutions has a P/B ratio of 0.89 while its industry's price-to-book ratio sits at 1.67. For FISI, this valuation metric has been as high as 1.16, as low as 0.89, with a median of 1.05 over the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Capital Bancorp and Financial Institutions are likely undervalued currently. And when considering the strength of its earnings outlook, CBNK and FISI sticks out as one of the market's strongest value stocks.


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