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Is Byline Bancorp (BY) a Great Value Stock Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Byline Bancorp (BY - Free Report) . BY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

We should also highlight that BY has a P/B ratio of 1.14. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.46. Over the past year, BY's P/B has been as high as 1.32 and as low as 1.01, with a median of 1.16.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BY has a P/S ratio of 2.51. This compares to its industry's average P/S of 2.68.

Finally, our model also underscores that BY has a P/CF ratio of 8.68. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. BY's P/CF compares to its industry's average P/CF of 13.31. Over the past 52 weeks, BY's P/CF has been as high as 9.81 and as low as 7.57, with a median of 8.65.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Byline Bancorp is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BY feels like a great value stock at the moment.


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