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NCBS vs. CBU: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Banks - Northeast stocks have likely encountered both Nicolet Bankshares and Community Bank System (CBU - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Nicolet Bankshares is sporting a Zacks Rank of #2 (Buy), while Community Bank System has a Zacks Rank of #3 (Hold). This means that NCBS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
NCBS currently has a forward P/E ratio of 14.12, while CBU has a forward P/E of 19.97. We also note that NCBS has a PEG ratio of 2.02. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CBU currently has a PEG ratio of 2.50.
Another notable valuation metric for NCBS is its P/B ratio of 1.51. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CBU has a P/B of 2.
These metrics, and several others, help NCBS earn a Value grade of B, while CBU has been given a Value grade of D.
NCBS is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that NCBS is likely the superior value option right now.
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NCBS vs. CBU: Which Stock Should Value Investors Buy Now?
Investors with an interest in Banks - Northeast stocks have likely encountered both Nicolet Bankshares and Community Bank System (CBU - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Nicolet Bankshares is sporting a Zacks Rank of #2 (Buy), while Community Bank System has a Zacks Rank of #3 (Hold). This means that NCBS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
NCBS currently has a forward P/E ratio of 14.12, while CBU has a forward P/E of 19.97. We also note that NCBS has a PEG ratio of 2.02. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CBU currently has a PEG ratio of 2.50.
Another notable valuation metric for NCBS is its P/B ratio of 1.51. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CBU has a P/B of 2.
These metrics, and several others, help NCBS earn a Value grade of B, while CBU has been given a Value grade of D.
NCBS is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that NCBS is likely the superior value option right now.