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Are Investors Undervaluing OP Bancorp (OPBK) 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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
OP Bancorp (OPBK - Free Report) is a stock many investors are watching right now. OPBK is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 6.82. This compares to its industry's average Forward P/E of 14.10. Over the past 52 weeks, OPBK's Forward P/E has been as high as 11.26 and as low as 6.82, with a median of 10.05.
OPBK is also sporting a PEG ratio of 1.01. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. OPBK's industry has an average PEG of 1.60 right now. Within the past year, OPBK's PEG has been as high as 1.13 and as low as 0.85, with a median of 0.97.
Another valuation metric that we should highlight is OPBK's P/B ratio of 0.76. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. OPBK's current P/B looks attractive when compared to its industry's average P/B of 1.57. Within the past 52 weeks, OPBK's P/B has been as high as 1.30 and as low as 0.76, with a median of 1.13.
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. OPBK has a P/S ratio of 1.57. This compares to its industry's average P/S of 1.84.
Finally, we should also recognize that OPBK has a P/CF ratio of 5.20. 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. This stock's P/CF looks attractive against its industry's average P/CF of 12.44. Over the past 52 weeks, OPBK's P/CF has been as high as 9.23 and as low as 5.20, with a median of 7.82.
These figures are just a handful of the metrics value investors tend to look at, but they help show that OP Bancorp is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, OPBK feels like a great value stock at the moment.
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Are Investors Undervaluing OP Bancorp (OPBK) Right Now?
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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
OP Bancorp (OPBK - Free Report) is a stock many investors are watching right now. OPBK is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 6.82. This compares to its industry's average Forward P/E of 14.10. Over the past 52 weeks, OPBK's Forward P/E has been as high as 11.26 and as low as 6.82, with a median of 10.05.
OPBK is also sporting a PEG ratio of 1.01. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. OPBK's industry has an average PEG of 1.60 right now. Within the past year, OPBK's PEG has been as high as 1.13 and as low as 0.85, with a median of 0.97.
Another valuation metric that we should highlight is OPBK's P/B ratio of 0.76. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. OPBK's current P/B looks attractive when compared to its industry's average P/B of 1.57. Within the past 52 weeks, OPBK's P/B has been as high as 1.30 and as low as 0.76, with a median of 1.13.
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. OPBK has a P/S ratio of 1.57. This compares to its industry's average P/S of 1.84.
Finally, we should also recognize that OPBK has a P/CF ratio of 5.20. 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. This stock's P/CF looks attractive against its industry's average P/CF of 12.44. Over the past 52 weeks, OPBK's P/CF has been as high as 9.23 and as low as 5.20, with a median of 7.82.
These figures are just a handful of the metrics value investors tend to look at, but they help show that OP Bancorp is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, OPBK feels like a great value stock at the moment.