Is Capital Bancorp (CBNK) Stock Undervalued Right Now?

CBNK CFBK

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.

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.

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.

One company value investors might notice is Capital Bancorp (CBNK - Free Report) . CBNK is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 7.76 right now. For comparison, its industry sports an average P/E of 8.06. Over the past 52 weeks, CBNK's Forward P/E has been as high as 11.26 and as low as 7.38, with a median of 8.71.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. CBNK has a P/S ratio of 1.85. This compares to its industry's average P/S of 2.7.

Finally, investors will want to recognize that CBNK has a P/CF ratio of 7.37. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.41. CBNK's P/CF has been as high as 9.61 and as low as 6.66, with a median of 7.97, all within the past year.

Investors could also keep in mind CF Bankshares (CFBK - Free Report) , an Banks - Northeast stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

CF Bankshares sports a P/B ratio of 0.82 as well; this compares to its industry's price-to-book ratio of 1.41. In the past 52 weeks, CFBK's P/B has been as high as 1, as low as 0.81, with a median of 0.87.

These are just a handful of the figures considered in Capital Bancorp and CF Bankshares's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CBNK and CFBK is an impressive value stock right now.

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