Back to top

Image: Bigstock

Should Value Investors Buy Associated BancCorp (ASB) Stock?

Read MoreHide Full Article

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 company to watch right now is Associated BancCorp (ASB - Free Report) . ASB is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

We should also highlight that ASB has a P/B ratio of 0.93. 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 attractive against its industry's average P/B of 2.27. ASB's P/B has been as high as 1.01 and as low as 0.70, with a median of 0.87, over the past year.

Finally, we should also recognize that ASB has a P/CF ratio of 7.90. 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. ASB's current P/CF looks attractive when compared to its industry's average P/CF of 14.64. Over the past year, ASB's P/CF has been as high as 8.54 and as low as 6.05, with a median of 7.33.

These are just a handful of the figures considered in Associated BancCorp's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ASB is an impressive value stock right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Associated Banc-Corp (ASB) - free report >>

Published in