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Should Value Investors Buy OP Bancorp (OPBK) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 value investors might notice is OP Bancorp (OPBK - Free Report) . OPBK is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.27, which compares to its industry's average of 12.92. OPBK's Forward P/E has been as high as 7.55 and as low as 5.02, with a median of 6.23, all within the past year.
Another notable valuation metric for OPBK is its P/B ratio of 0.89. The P/B ratio pits a stock's market value against 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 1.88. OPBK's P/B has been as high as 1.01 and as low as 0.62, with a median of 0.77, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. OPBK has a P/S ratio of 1.24. This compares to its industry's average P/S of 1.87.
Finally, we should also recognize that OPBK has a P/CF ratio of 5.39. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.12. OPBK's P/CF has been as high as 5.49 and as low as 3.27, with a median of 4.23, all within the past year.
These are just a handful of the figures considered in OP 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 OPBK is an impressive value stock right now.
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Should Value Investors Buy OP Bancorp (OPBK) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 value investors might notice is OP Bancorp (OPBK - Free Report) . OPBK is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.27, which compares to its industry's average of 12.92. OPBK's Forward P/E has been as high as 7.55 and as low as 5.02, with a median of 6.23, all within the past year.
Another notable valuation metric for OPBK is its P/B ratio of 0.89. The P/B ratio pits a stock's market value against 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 1.88. OPBK's P/B has been as high as 1.01 and as low as 0.62, with a median of 0.77, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. OPBK has a P/S ratio of 1.24. This compares to its industry's average P/S of 1.87.
Finally, we should also recognize that OPBK has a P/CF ratio of 5.39. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.12. OPBK's P/CF has been as high as 5.49 and as low as 3.27, with a median of 4.23, all within the past year.
These are just a handful of the figures considered in OP 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 OPBK is an impressive value stock right now.