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Should Value Investors Buy CB Financial Services (CBFV) 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.

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 CB Financial Services (CBFV - Free Report) . CBFV is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Investors should also recognize that CBFV has a P/B ratio of 1.08. The P/B ratio is used to compare a stock's market value with 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 1.10. Within the past 52 weeks, CBFV's P/B has been as high as 1.15 and as low as 0.87, with a median of 1.02.

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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CBFV has a P/S ratio of 2. This compares to its industry's average P/S of 2.25.

Finally, investors will want to recognize that CBFV has a P/CF ratio of 8.48. 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. CBFV's current P/CF looks attractive when compared to its industry's average P/CF of 10.27. Over the past 52 weeks, CBFV's P/CF has been as high as 9.03 and as low as 6.33, with a median of 7.75.

Value investors will likely look at more than just these metrics, but the above data helps show that CB Financial Services is likely undervalued currently. And when considering the strength of its earnings outlook, CBFV sticks out at as one of the market's strongest value stocks.


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