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.
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 Central Valley Community Bancorp . CVCY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 11, while its industry has an average P/E of 13.28. CVCY's Forward P/E has been as high as 15.34 and as low as 8.11, with a median of 12.83, all within the past year.
Investors should also note that CVCY holds a PEG ratio of 1.63. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CVCY's PEG compares to its industry's average PEG of 2.01. CVCY's PEG has been as high as 1.71 and as low as 1.48, with a median of 1.59, all within the past year.
Another notable valuation metric for CVCY is its P/B ratio of 0.80. 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 attractive against its industry's average P/B of 1.16. Within the past 52 weeks, CVCY's P/B has been as high as 1.27 and as low as 0.64, with a median of 1.15.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CVCY has a P/S ratio of 2.12. This compares to its industry's average P/S of 2.2.
Finally, investors will want to recognize that CVCY has a P/CF ratio of 6.43. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. CVCY's current P/CF looks attractive when compared to its industry's average P/CF of 13.83. Over the past year, CVCY's P/CF has been as high as 10.85 and as low as 4.90, with a median of 9.43.
Value investors will likely look at more than just these metrics, but the above data helps show that Central Valley Community Bancorp is likely undervalued currently. And when considering the strength of its earnings outlook, CVCY sticks out at as one of the market's strongest value stocks.
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Is Central Valley Community Bancorp (CVCY) a Great Value Stock Right Now?
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.
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 Central Valley Community Bancorp . CVCY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 11, while its industry has an average P/E of 13.28. CVCY's Forward P/E has been as high as 15.34 and as low as 8.11, with a median of 12.83, all within the past year.
Investors should also note that CVCY holds a PEG ratio of 1.63. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CVCY's PEG compares to its industry's average PEG of 2.01. CVCY's PEG has been as high as 1.71 and as low as 1.48, with a median of 1.59, all within the past year.
Another notable valuation metric for CVCY is its P/B ratio of 0.80. 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 attractive against its industry's average P/B of 1.16. Within the past 52 weeks, CVCY's P/B has been as high as 1.27 and as low as 0.64, with a median of 1.15.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CVCY has a P/S ratio of 2.12. This compares to its industry's average P/S of 2.2.
Finally, investors will want to recognize that CVCY has a P/CF ratio of 6.43. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. CVCY's current P/CF looks attractive when compared to its industry's average P/CF of 13.83. Over the past year, CVCY's P/CF has been as high as 10.85 and as low as 4.90, with a median of 9.43.
Value investors will likely look at more than just these metrics, but the above data helps show that Central Valley Community Bancorp is likely undervalued currently. And when considering the strength of its earnings outlook, CVCY sticks out at as one of the market's strongest value stocks.