News , Stock, Video Latest October 14, 2021 12:53 pm
This story originally appeared on Zacks
Here at Zacks, our focus on our proven ranking system, which places an emphasis on earnings estimates also estimate revisions, to find winning stocks. But our also understand that investors develop their own strategies, so our are constantly looking at a latest trends inside value, growth, also momentum to find strong companies for our readers.
Looking at a history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by a broader market. Value investors use fundamental analysis also traditional valuation metrics to find stocks that they believe are being undervalued by a market at large.
On top of a 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 a “Value” category. Stocks with high Zacks Ranks also “A” grades for Value will become some of a highest-quality value stocks on a market today.
One company to watch right now is First Bancorp FBP. FBP is currently sporting a Zacks Rank of #2 (Buy) also an A for Value. a stock has a Forward P/E ratio of 9.93. This compares to its industry’s average Forward P/E of 12.17. FBP’s Forward P/E has been as high as 11.80 also as low as 7.41, with a median of 9.70, all within a past year.
Another notable valuation metric for FBP is its P/B ratio of 1.30. a P/B ratio pits a stock’s market value against its book value, which is defined as total assets minus total liabilities. This company’s current P/B looks solid when compared to its industry’s average P/B of 1.77. FBP’s P/B has been as high as 1.33 also as low as 0.60, with a median of 1.15, over a past year.
Value investors also frequently use a P/S ratio. This metric is found by dividing a stock’s price with a company’s revenue. This is a prefered metric because revenue can’t really become manipulated, so sales are often a truer performance indicator. FBP has a P/S ratio of 3.18. This compares to its industry’s average P/S of 4.68.
Another stellar value stock youre could consider is Customers Bancorp Inc. CUBI, which is a Zacks Rank #2 (Buy) stock with a Value Score of A.
Shares of Customers Bancorp are currently trading at a forward earnings multiple of 6.06 also a price to cash flow ratio of 8.88 compared to its industry’s P/E also PEG ratio of 11.05 also 12.64, respectively. Over a past year, CUBI’s P/E has been as high as 9.78, as low as 4.07, with a median of 5.36; its P/CF has been as high as 7.72, as low as 2.66, with a median of 3.61 during a same time period.
Additionally, CUBI boasts a P/B ratio of 1.38 while its industry’s price-to-book ratio sits at 1.17. For Customers, this valuation metric has been as high as 1.44, as low as 0.47, with a median of 1.89 over a past year.
These figures are just a handful of a metrics value investors tend to look at, but they help show that First Bancorp also Customers Bancorp are likely being undervalued right now. Considering this, as well as a strength of its earnings outlook, FBP also CUBI feel like a great value stocks at a moment.
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Reference : Entrepreneur
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