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Are Investors Undervaluing Isabella Bank (ISBA) Right Now?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 Isabella Bank (ISBA - Free Report) . ISBA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Another notable valuation metric for ISBA is its P/B ratio of 0.72. 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. ISBA's current P/B looks attractive when compared to its industry's average P/B of 1.28. Within the past 52 weeks, ISBA's P/B has been as high as 0.88 and as low as 0.66, with a median of 0.76.

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. ISBA has a P/S ratio of 1.47. This compares to its industry's average P/S of 1.82.

Finally, we should also recognize that ISBA has a P/CF ratio of 7.96. 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. ISBA's P/CF compares to its industry's average P/CF of 13.09. Over the past 52 weeks, ISBA's P/CF has been as high as 8.14 and as low as 5.74, with a median of 6.91.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Isabella Bank is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ISBA feels like a great value stock at the moment.


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