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Are Investors Undervaluing FS Bancorp (FSBW) 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, 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 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.
One company to watch right now is FS Bancorp (FSBW - Free Report) . FSBW is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 9.22 right now. For comparison, its industry sports an average P/E of 10.71. Over the past year, FSBW's Forward P/E has been as high as 10.60 and as low as 6.37, with a median of 7.67.
We should also highlight that FSBW has a P/B ratio of 1.14. 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 solid versus its industry's average P/B of 1.27. FSBW's P/B has been as high as 1.23 and as low as 0.87, with a median of 0.95, 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. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FSBW has a P/S ratio of 1.62. This compares to its industry's average P/S of 2.07.
Finally, our model also underscores that FSBW has a P/CF ratio of 6.72. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. FSBW's current P/CF looks attractive when compared to its industry's average P/CF of 10.21. Over the past 52 weeks, FSBW's P/CF has been as high as 7.21 and as low as 4.71, with a median of 5.33.
These are only a few of the key metrics included in FS 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, FSBW looks like an impressive value stock at the moment.
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Are Investors Undervaluing FS Bancorp (FSBW) 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, 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 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.
One company to watch right now is FS Bancorp (FSBW - Free Report) . FSBW is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 9.22 right now. For comparison, its industry sports an average P/E of 10.71. Over the past year, FSBW's Forward P/E has been as high as 10.60 and as low as 6.37, with a median of 7.67.
We should also highlight that FSBW has a P/B ratio of 1.14. 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 solid versus its industry's average P/B of 1.27. FSBW's P/B has been as high as 1.23 and as low as 0.87, with a median of 0.95, 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. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FSBW has a P/S ratio of 1.62. This compares to its industry's average P/S of 2.07.
Finally, our model also underscores that FSBW has a P/CF ratio of 6.72. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. FSBW's current P/CF looks attractive when compared to its industry's average P/CF of 10.21. Over the past 52 weeks, FSBW's P/CF has been as high as 7.21 and as low as 4.71, with a median of 5.33.
These are only a few of the key metrics included in FS 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, FSBW looks like an impressive value stock at the moment.