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Is ChoiceOne Financial Services (COFS) a Great Value Stock Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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.

One company value investors might notice is ChoiceOne Financial Services (COFS - Free Report) . COFS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 8.56, while its industry has an average P/E of 12.97. Over the past 52 weeks, COFS's Forward P/E has been as high as 11.04 and as low as 5.66, with a median of 8.98.

We should also highlight that COFS has a P/B ratio of 0.97. 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 stock's P/B looks solid versus its industry's average P/B of 2.17. Within the past 52 weeks, COFS's P/B has been as high as 1.32 and as low as 0.68, with a median of 1.01.

Finally, we should also recognize that COFS has a P/CF ratio of 5.66. 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. COFS's P/CF compares to its industry's average P/CF of 14.04. Over the past year, COFS's P/CF has been as high as 6.82 and as low as 3.48, with a median of 5.10.

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


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