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Are Investors Undervaluing First Business Financial Services (FBIZ) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
First Business Financial Services (FBIZ - Free Report) is a stock many investors are watching right now. FBIZ is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 10.78. This compares to its industry's average Forward P/E of 11. FBIZ's Forward P/E has been as high as 12.69 and as low as 9.32, with a median of 10.37, all within the past year.
Investors should also note that FBIZ holds a PEG ratio of 1.35. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. FBIZ's industry has an average PEG of 1.36 right now. Within the past year, FBIZ's PEG has been as high as 1.59 and as low as 1.17, with a median of 1.30.
Another notable valuation metric for FBIZ is its P/B ratio of 1.16. 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 2.11. Within the past 52 weeks, FBIZ's P/B has been as high as 1.31 and as low as 0.94, with a median of 1.08.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. FBIZ has a P/S ratio of 1.8. This compares to its industry's average P/S of 2.99.
Finally, we should also recognize that FBIZ has a P/CF ratio of 10.36. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. FBIZ's current P/CF looks attractive when compared to its industry's average P/CF of 11.92. FBIZ's P/CF has been as high as 14.83 and as low as 8.76, with a median of 10.16, all within the past year.
These are only a few of the key metrics included in First Business Financial Services'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, FBIZ looks like an impressive value stock at the moment.
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Are Investors Undervaluing First Business Financial Services (FBIZ) Right Now?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
First Business Financial Services (FBIZ - Free Report) is a stock many investors are watching right now. FBIZ is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 10.78. This compares to its industry's average Forward P/E of 11. FBIZ's Forward P/E has been as high as 12.69 and as low as 9.32, with a median of 10.37, all within the past year.
Investors should also note that FBIZ holds a PEG ratio of 1.35. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. FBIZ's industry has an average PEG of 1.36 right now. Within the past year, FBIZ's PEG has been as high as 1.59 and as low as 1.17, with a median of 1.30.
Another notable valuation metric for FBIZ is its P/B ratio of 1.16. 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 2.11. Within the past 52 weeks, FBIZ's P/B has been as high as 1.31 and as low as 0.94, with a median of 1.08.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. FBIZ has a P/S ratio of 1.8. This compares to its industry's average P/S of 2.99.
Finally, we should also recognize that FBIZ has a P/CF ratio of 10.36. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. FBIZ's current P/CF looks attractive when compared to its industry's average P/CF of 11.92. FBIZ's P/CF has been as high as 14.83 and as low as 8.76, with a median of 10.16, all within the past year.
These are only a few of the key metrics included in First Business Financial Services'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, FBIZ looks like an impressive value stock at the moment.