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Is Republic Bancorp (RBCAA) Stock Undervalued Right Now?

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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 Republic Bancorp (RBCAA - Free Report) . RBCAA is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Investors should also recognize that RBCAA has a P/B ratio of 1.06. 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. RBCAA's current P/B looks attractive when compared to its industry's average P/B of 1.99. Within the past 52 weeks, RBCAA's P/B has been as high as 1.18 and as low as 0.91, with a median of 1.06.

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. RBCAA has a P/S ratio of 2.67. This compares to its industry's average P/S of 2.68.

Finally, our model also underscores that RBCAA has a P/CF ratio of 8.82. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.58. Over the past 52 weeks, RBCAA's P/CF has been as high as 11.20 and as low as 7.51, with a median of 9.

These are just a handful of the figures considered in Republic Bancorp'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 RBCAA is an impressive value stock right now.


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