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Are Investors Undervaluing Republic First Bancorp (FRBK) Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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.

Republic First Bancorp (FRBK - Free Report) is a stock many investors are watching right now. FRBK is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Investors should also recognize that FRBK has a P/B ratio of 0.59. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.52. Over the past year, FRBK's P/B has been as high as 1.02 and as low as 0.51, with a median of 0.71.

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. FRBK has a P/S ratio of 1.06. This compares to its industry's average P/S of 2.8.

Finally, our model also underscores that FRBK has a P/CF ratio of 5.37. 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. FRBK's P/CF compares to its industry's average P/CF of 15.44. Over the past 52 weeks, FRBK's P/CF has been as high as 10.02 and as low as 4.68, with a median of 7.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Republic First Bancorp is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FRBK feels like a great value stock at the moment.


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