Should Value Investors Buy CB Financial Services (CBFV) Stock?

FISI CBFV

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 company value investors might notice is CB Financial Services (CBFV - Free Report) . CBFV is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 9.68, which compares to its industry's average of 10.07. CBFV's Forward P/E has been as high as 12.70 and as low as 6.23, with a median of 7.72, all within the past year.

Another valuation metric that we should highlight is CBFV's P/B ratio of 1.06. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. CBFV's current P/B looks attractive when compared to its industry's average P/B of 1.42. Over the past year, CBFV's P/B has been as high as 1.15 and as low as 0.81, with a median of 0.96.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CBFV has a P/S ratio of 1.77. This compares to its industry's average P/S of 1.91.

Finally, investors will want to recognize that CBFV has a P/CF ratio of 7.33. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CBFV's current P/CF looks attractive when compared to its industry's average P/CF of 12.08. Over the past year, CBFV's P/CF has been as high as 9.03 and as low as 5.79, with a median of 6.73.

Another great Banks - Northeast stock you could consider is Financial Institutions (FISI - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.

Additionally, Financial Institutions has a P/B ratio of 0.84 while its industry's price-to-book ratio sits at 1.42. For FISI, this valuation metric has been as high as 1.01, as low as 0.57, with a median of 0.68 over the past year.

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

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