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Are Investors Undervaluing Riverview Bancorp (RVSB) 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

One company value investors might notice is Riverview Bancorp (RVSB - Free Report) . RVSB is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Another notable valuation metric for RVSB is its P/B ratio of 0.52. 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 solid versus its industry's average P/B of 0.87. RVSB's P/B has been as high as 0.90 and as low as 0.48, with a median of 0.76, over the past year.

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. RVSB has a P/S ratio of 1.23. This compares to its industry's average P/S of 1.49.

These are only a few of the key metrics included in Riverview 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, RVSB looks like an impressive value stock at the moment.


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