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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, 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

Republic Bancorp (RBCAA - Free Report) is a stock many investors are watching right now. RBCAA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Investors should also recognize that RBCAA has a P/B ratio of 0.98. Investors use the P/B ratio to look at a stock's market value versus 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 1.58. Over the past year, RBCAA's P/B has been as high as 1.18 and as low as 0.86, with a median of 0.99.

Finally, investors should note that RBCAA has a P/CF ratio of 8.56. 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. This stock's P/CF looks attractive against its industry's average P/CF of 9.94. RBCAA's P/CF has been as high as 9.88 and as low as 7.42, with a median of 8.37, all within the past year.

These are only a few of the key metrics included in Republic Bancorp's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, RBCAA looks like an impressive value stock at the moment.


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