Should Value Investors Buy Capital Bancorp (CBNK) Stock?

FULT CBNK

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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 stock to keep an eye on is Capital Bancorp (CBNK - Free Report) . CBNK is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

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 1.39. This compares to its industry's average P/S of 1.6.

Finally, investors will want to recognize that CBNK has a P/CF ratio of 7.74. 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. CBNK's P/CF compares to its industry's average P/CF of 9.81. Over the past year, CBNK's P/CF has been as high as 7.99 and as low as 5.22, with a median of 7.09.

Another great Banks - Northeast stock you could consider is Fulton Financial (FULT - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Furthermore, Fulton Financial holds a P/B ratio of 0.85 and its industry's price-to-book ratio is 1.13. FULT's P/B has been as high as 1.38, as low as 0.66, with a median of 0.91 over the past 12 months.

These are only a few of the key metrics included in Capital Bancorp and Fulton Financial strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CBNK and FULT look like an impressive value stock at the moment.

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