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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 OP Bancorp (OPBK - Free Report) . OPBK is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.30, while its industry has an average P/E of 14.17. OPBK's Forward P/E has been as high as 10.92 and as low as 6.63, with a median of 9.83, all within the past year.
Investors will also notice that OPBK has a PEG ratio of 1.01. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. OPBK's PEG compares to its industry's average PEG of 1.61. Within the past year, OPBK's PEG has been as high as 1.06 and as low as 0.85, with a median of 0.96.
Another valuation metric that we should highlight is OPBK's P/B ratio of 0.79. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.57. Over the past 12 months, OPBK's P/B has been as high as 1.28 and as low as 0.64, with a median of 1.11.
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. OPBK has a P/S ratio of 1.51. This compares to its industry's average P/S of 2.18.
Finally, we should also recognize that OPBK has a P/CF ratio of 5.91. 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. OPBK's current P/CF looks attractive when compared to its industry's average P/CF of 12.44. Within the past 12 months, OPBK's P/CF has been as high as 9.13 and as low as 4.79, with a median of 7.77.
These are just a handful of the figures considered in OP Bancorp's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that OPBK is an impressive value stock right now.
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Is OP Bancorp (OPBK) Stock Undervalued 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 OP Bancorp (OPBK - Free Report) . OPBK is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.30, while its industry has an average P/E of 14.17. OPBK's Forward P/E has been as high as 10.92 and as low as 6.63, with a median of 9.83, all within the past year.
Investors will also notice that OPBK has a PEG ratio of 1.01. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. OPBK's PEG compares to its industry's average PEG of 1.61. Within the past year, OPBK's PEG has been as high as 1.06 and as low as 0.85, with a median of 0.96.
Another valuation metric that we should highlight is OPBK's P/B ratio of 0.79. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.57. Over the past 12 months, OPBK's P/B has been as high as 1.28 and as low as 0.64, with a median of 1.11.
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. OPBK has a P/S ratio of 1.51. This compares to its industry's average P/S of 2.18.
Finally, we should also recognize that OPBK has a P/CF ratio of 5.91. 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. OPBK's current P/CF looks attractive when compared to its industry's average P/CF of 12.44. Within the past 12 months, OPBK's P/CF has been as high as 9.13 and as low as 4.79, with a median of 7.77.
These are just a handful of the figures considered in OP Bancorp's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that OPBK is an impressive value stock right now.