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Is Sierra Bancorp (BSRR) Stock Undervalued Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.

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 stock to keep an eye on is Sierra Bancorp (BSRR - Free Report) . BSRR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 8.85, while its industry has an average P/E of 9.39. Over the past 52 weeks, BSRR's Forward P/E has been as high as 9.40 and as low as 6.84, with a median of 8.08.

We should also highlight that BSRR has a P/B ratio of 0.92. The P/B is a method of comparing a stock's market value to 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 1.10. BSRR's P/B has been as high as 1.10 and as low as 0.75, with a median of 0.90, over the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BSRR has a P/S ratio of 1.62. This compares to its industry's average P/S of 1.86.

Finally, investors will want to recognize that BSRR has a P/CF ratio of 7.52. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. BSRR's P/CF compares to its industry's average P/CF of 8.37. Over the past year, BSRR's P/CF has been as high as 7.97 and as low as 5.80, with a median of 6.89.

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


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