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Are Investors Undervaluing Hope Bancorp (HOPE) 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Hope Bancorp (HOPE - Free Report) . HOPE is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 10.80. This compares to its industry's average Forward P/E of 13.91. HOPE's Forward P/E has been as high as 15.18 and as low as 10.51, with a median of 11.75, all within the past year.
Investors will also notice that HOPE has a PEG ratio of 1.08. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. HOPE's industry currently sports an average PEG of 1.40. Over the last 12 months, HOPE's PEG has been as high as 1.52 and as low as 1.05, with a median of 1.18.
Another notable valuation metric for HOPE is its P/B ratio of 1.18. 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 solid versus its industry's average P/B of 1.81. Over the past year, HOPE's P/B has been as high as 1.36 and as low as 1.15, with a median of 1.27.
Finally, investors will want to recognize that HOPE has a P/CF ratio of 14.81. 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. HOPE's current P/CF looks attractive when compared to its industry's average P/CF of 15. Within the past 12 months, HOPE's P/CF has been as high as 21.06 and as low as 14.41, with a median of 16.88.
Value investors will likely look at more than just these metrics, but the above data helps show that Hope Bancorp is likely undervalued currently. And when considering the strength of its earnings outlook, HOPE sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Hope Bancorp (HOPE) 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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Hope Bancorp (HOPE - Free Report) . HOPE is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 10.80. This compares to its industry's average Forward P/E of 13.91. HOPE's Forward P/E has been as high as 15.18 and as low as 10.51, with a median of 11.75, all within the past year.
Investors will also notice that HOPE has a PEG ratio of 1.08. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. HOPE's industry currently sports an average PEG of 1.40. Over the last 12 months, HOPE's PEG has been as high as 1.52 and as low as 1.05, with a median of 1.18.
Another notable valuation metric for HOPE is its P/B ratio of 1.18. 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 solid versus its industry's average P/B of 1.81. Over the past year, HOPE's P/B has been as high as 1.36 and as low as 1.15, with a median of 1.27.
Finally, investors will want to recognize that HOPE has a P/CF ratio of 14.81. 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. HOPE's current P/CF looks attractive when compared to its industry's average P/CF of 15. Within the past 12 months, HOPE's P/CF has been as high as 21.06 and as low as 14.41, with a median of 16.88.
Value investors will likely look at more than just these metrics, but the above data helps show that Hope Bancorp is likely undervalued currently. And when considering the strength of its earnings outlook, HOPE sticks out at as one of the market's strongest value stocks.