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Is Associated BancCorp (ASB) Stock Undervalued Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Associated BancCorp (ASB - Free Report) is a stock many investors are watching right now. ASB is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.27. This compares to its industry's average Forward P/E of 10.14. Over the last 12 months, ASB's Forward P/E has been as high as 10.52 and as low as 6.16, with a median of 8.32.
We also note that ASB holds a PEG ratio of 1.16. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ASB's PEG compares to its industry's average PEG of 2.12. ASB's PEG has been as high as 1.32 and as low as 0.77, with a median of 1.04, all within the past year.
Another valuation metric that we should highlight is ASB's P/B ratio of 0.77. 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 1.74. Over the past 12 months, ASB's P/B has been as high as 0.84 and as low as 0.56, with a median of 0.68.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ASB has a P/S ratio of 1.35. This compares to its industry's average P/S of 1.73.
Finally, our model also underscores that ASB has a P/CF ratio of 9.83. 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 11.27. Within the past 12 months, ASB's P/CF has been as high as 10.66 and as low as 4.43, with a median of 5.39.
These are just a handful of the figures considered in Associated BancCorp'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 ASB is an impressive value stock right now.
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Is Associated BancCorp (ASB) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Associated BancCorp (ASB - Free Report) is a stock many investors are watching right now. ASB is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.27. This compares to its industry's average Forward P/E of 10.14. Over the last 12 months, ASB's Forward P/E has been as high as 10.52 and as low as 6.16, with a median of 8.32.
We also note that ASB holds a PEG ratio of 1.16. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ASB's PEG compares to its industry's average PEG of 2.12. ASB's PEG has been as high as 1.32 and as low as 0.77, with a median of 1.04, all within the past year.
Another valuation metric that we should highlight is ASB's P/B ratio of 0.77. 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 1.74. Over the past 12 months, ASB's P/B has been as high as 0.84 and as low as 0.56, with a median of 0.68.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ASB has a P/S ratio of 1.35. This compares to its industry's average P/S of 1.73.
Finally, our model also underscores that ASB has a P/CF ratio of 9.83. 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 11.27. Within the past 12 months, ASB's P/CF has been as high as 10.66 and as low as 4.43, with a median of 5.39.
These are just a handful of the figures considered in Associated BancCorp'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 ASB is an impressive value stock right now.