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Is OP Bancorp (OPBK) a Great Value Stock Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 OP Bancorp (OPBK - Free Report) . OPBK is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 4.99, which compares to its industry's average of 13.38. Over the past year, OPBK's Forward P/E has been as high as 8.73 and as low as 4.99, with a median of 7.13.

Another valuation metric that we should highlight is OPBK's P/B ratio of 1.05. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. OPBK's current P/B looks attractive when compared to its industry's average P/B of 2.22. OPBK's P/B has been as high as 1.33 and as low as 0.95, with a median of 1.12, over the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. OPBK has a P/S ratio of 2.1. This compares to its industry's average P/S of 3.12.

Finally, investors will want to recognize that OPBK has a P/CF ratio of 5.36. 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 16.78. Over the past year, OPBK's P/CF has been as high as 8.51 and as low as 5.32, with a median of 6.51.

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


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