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Is MainStreet Bank (MNSB) Stock Undervalued 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is MainStreet Bank (MNSB - Free Report) . MNSB is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Another notable valuation metric for MNSB is its P/B ratio of 1.18. 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 1.28. Over the past 12 months, MNSB's P/B has been as high as 1.25 and as low as 1.09, with a median of 1.17.

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. MNSB has a P/S ratio of 2.61. This compares to its industry's average P/S of 2.72.

Finally, investors should note that MNSB has a P/CF ratio of 7.63. 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 stock's P/CF looks attractive against its industry's average P/CF of 13.36. Over the past year, MNSB's P/CF has been as high as 8.71 and as low as 6.12, with a median of 7.10.

Orrstown Financial Services (ORRF - Free Report) may be another strong Banks - Northeast stock to add to your shortlist. ORRF is a # 2 (Buy) stock with a Value grade of A.

Furthermore, Orrstown Financial Services holds a P/B ratio of 1.03 and its industry's price-to-book ratio is 1.28. ORRF's P/B has been as high as 1.14, as low as 0.93, with a median of 1 over the past 12 months.

These are only a few of the key metrics included in MainStreet Bank and Orrstown Financial Services strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, MNSB and ORRF look like an impressive value stock at the moment.


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