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Are These Finance Stocks Undervalued 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

First Community (FCCO - Free Report) is a stock many investors are watching right now. FCCO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 11.98, which compares to its industry's average of 12.85. Over the past 52 weeks, FCCO's Forward P/E has been as high as 15.48 and as low as 10.07, with a median of 11.47.

Another notable valuation metric for FCCO is its P/B ratio of 1.17. The P/B is a method of comparing a stock's market value to 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 1.84. FCCO's P/B has been as high as 1.18 and as low as 0.90, with a median of 1.08, over the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FCCO has a P/S ratio of 2.61. This compares to its industry's average P/S of 3.3.

Finally, investors should note that FCCO has a P/CF ratio of 8.64. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. FCCO's current P/CF looks attractive when compared to its industry's average P/CF of 16.84. Over the past 52 weeks, FCCO's P/CF has been as high as 11.29 and as low as 7.69, with a median of 9.21.

Investors could also keep in mind Summit Financial Group (SMMF - Free Report) , an Banks - Southeast stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Furthermore, Summit Financial Group holds a P/B ratio of 1.15 and its industry's price-to-book ratio is 1.84. SMMF's P/B has been as high as 1.25, as low as 0.92, with a median of 1.05 over the past 12 months.

These are only a few of the key metrics included in First Community and Summit Financial Group strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, FCCO and SMMF look like an impressive value stock at the moment.


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First Community Corporation (FCCO) - free report >>

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