Back to top

Image: Bigstock

Are Investors Undervaluing Riverview Bancorp (RVSB) Right Now?

Read MoreHide Full Article

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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

One stock to keep an eye on is Riverview Bancorp (RVSB - Free Report) . RVSB is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.07. This compares to its industry's average Forward P/E of 11.18. Over the past year, RVSB's Forward P/E has been as high as 11.20 and as low as 8.85, with a median of 9.82.

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. RVSB has a P/S ratio of 2.62. This compares to its industry's average P/S of 2.95.

Finally, we should also recognize that RVSB has a P/CF ratio of 8.07. 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. RVSB's current P/CF looks attractive when compared to its industry's average P/CF of 10.12. Over the past 52 weeks, RVSB's P/CF has been as high as 11.77 and as low as 7.83, with a median of 8.90.

Value investors will likely look at more than just these metrics, but the above data helps show that Riverview Bancorp is likely undervalued currently. And when considering the strength of its earnings outlook, RVSB sticks out at as one of the market's strongest value stocks.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Riverview Bancorp Inc (RVSB) - free report >>

Published in