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Are Investors Undervaluing BCB Bancorp NJ (BCBP) 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.
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is BCB Bancorp NJ (BCBP - Free Report) . BCBP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.02. This compares to its industry's average Forward P/E of 9.42. BCBP's Forward P/E has been as high as 9.05 and as low as 4.88, with a median of 7.24, all within the past year.
Investors should also recognize that BCBP has a P/B ratio of 0.69. 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. BCBP's current P/B looks attractive when compared to its industry's average P/B of 1.31. Over the past year, BCBP's P/B has been as high as 0.79 and as low as 0.54, with a median of 0.65.
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. BCBP has a P/S ratio of 1. This compares to its industry's average P/S of 1.78.
Finally, we should also recognize that BCBP has a P/CF ratio of 9.58. 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. This stock's P/CF looks attractive against its industry's average P/CF of 12.95. BCBP's P/CF has been as high as 10.42 and as low as 4.58, with a median of 6.37, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that BCB Bancorp NJ is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BCBP feels like a great value stock at the moment.
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Are Investors Undervaluing BCB Bancorp NJ (BCBP) Right Now?
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.
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is BCB Bancorp NJ (BCBP - Free Report) . BCBP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.02. This compares to its industry's average Forward P/E of 9.42. BCBP's Forward P/E has been as high as 9.05 and as low as 4.88, with a median of 7.24, all within the past year.
Investors should also recognize that BCBP has a P/B ratio of 0.69. 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. BCBP's current P/B looks attractive when compared to its industry's average P/B of 1.31. Over the past year, BCBP's P/B has been as high as 0.79 and as low as 0.54, with a median of 0.65.
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. BCBP has a P/S ratio of 1. This compares to its industry's average P/S of 1.78.
Finally, we should also recognize that BCBP has a P/CF ratio of 9.58. 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. This stock's P/CF looks attractive against its industry's average P/CF of 12.95. BCBP's P/CF has been as high as 10.42 and as low as 4.58, with a median of 6.37, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that BCB Bancorp NJ is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BCBP feels like a great value stock at the moment.