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Are Investors Undervaluing CF Bankshares (CFBK) 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.
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is CF Bankshares (CFBK - Free Report) . CFBK is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 7.14. This compares to its industry's average Forward P/E of 8.12. Over the past 52 weeks, CFBK's Forward P/E has been as high as 8.02 and as low as 6.15, with a median of 7.20.
Another valuation metric that we should highlight is CFBK's P/B ratio of 0.81. 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. This stock's P/B looks solid versus its industry's average P/B of 1.46. CFBK's P/B has been as high as 0.96 and as low as 0.81, with a median of 0.86, over the past year.
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. CFBK has a P/S ratio of 1.75. This compares to its industry's average P/S of 2.69.
Finally, we should also recognize that CFBK has a P/CF ratio of 7.94. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 13.28. Over the past 52 weeks, CFBK's P/CF has been as high as 9.75 and as low as 7.79, with a median of 8.51.
These are only a few of the key metrics included in CF Bankshares'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, CFBK looks like an impressive value stock at the moment.
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Are Investors Undervaluing CF Bankshares (CFBK) Right Now?
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.
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is CF Bankshares (CFBK - Free Report) . CFBK is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 7.14. This compares to its industry's average Forward P/E of 8.12. Over the past 52 weeks, CFBK's Forward P/E has been as high as 8.02 and as low as 6.15, with a median of 7.20.
Another valuation metric that we should highlight is CFBK's P/B ratio of 0.81. 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. This stock's P/B looks solid versus its industry's average P/B of 1.46. CFBK's P/B has been as high as 0.96 and as low as 0.81, with a median of 0.86, over the past year.
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. CFBK has a P/S ratio of 1.75. This compares to its industry's average P/S of 2.69.
Finally, we should also recognize that CFBK has a P/CF ratio of 7.94. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 13.28. Over the past 52 weeks, CFBK's P/CF has been as high as 9.75 and as low as 7.79, with a median of 8.51.
These are only a few of the key metrics included in CF Bankshares'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, CFBK looks like an impressive value stock at the moment.