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Should Value Investors Buy Merchants Bancorp (MBIN) Stock?
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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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 value investors might notice is Merchants Bancorp (MBIN - Free Report) . MBIN is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 6.16, while its industry has an average P/E of 8.41. Over the past year, MBIN's Forward P/E has been as high as 7.23 and as low as 4.82, with a median of 5.82.
Investors should also recognize that MBIN has a P/B ratio of 1.38. 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. MBIN's current P/B looks attractive when compared to its industry's average P/B of 1.45. Over the past year, MBIN's P/B has been as high as 1.59 and as low as 1.07, with a median of 1.22.
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. MBIN has a P/S ratio of 2.08. This compares to its industry's average P/S of 2.5.
Finally, investors will want to recognize that MBIN has a P/CF ratio of 5.70. 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. MBIN's current P/CF looks attractive when compared to its industry's average P/CF of 12.14. Over the past 52 weeks, MBIN's P/CF has been as high as 6.06 and as low as 3.42, with a median of 4.86.
Value investors will likely look at more than just these metrics, but the above data helps show that Merchants Bancorp is likely undervalued currently. And when considering the strength of its earnings outlook, MBIN sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Merchants Bancorp (MBIN) Stock?
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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 value investors might notice is Merchants Bancorp (MBIN - Free Report) . MBIN is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 6.16, while its industry has an average P/E of 8.41. Over the past year, MBIN's Forward P/E has been as high as 7.23 and as low as 4.82, with a median of 5.82.
Investors should also recognize that MBIN has a P/B ratio of 1.38. 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. MBIN's current P/B looks attractive when compared to its industry's average P/B of 1.45. Over the past year, MBIN's P/B has been as high as 1.59 and as low as 1.07, with a median of 1.22.
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. MBIN has a P/S ratio of 2.08. This compares to its industry's average P/S of 2.5.
Finally, investors will want to recognize that MBIN has a P/CF ratio of 5.70. 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. MBIN's current P/CF looks attractive when compared to its industry's average P/CF of 12.14. Over the past 52 weeks, MBIN's P/CF has been as high as 6.06 and as low as 3.42, with a median of 4.86.
Value investors will likely look at more than just these metrics, but the above data helps show that Merchants Bancorp is likely undervalued currently. And when considering the strength of its earnings outlook, MBIN sticks out at as one of the market's strongest value stocks.