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Are Investors Undervaluing Ameris Bancorp (ABCB) Right Now?
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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.
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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Ameris Bancorp (ABCB - Free Report) . ABCB is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.43, which compares to its industry's average of 11.37. Over the past 52 weeks, ABCB's Forward P/E has been as high as 11.65 and as low as 4.73, with a median of 9.35.
We should also highlight that ABCB has a P/B ratio of 0.61. 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 company's current P/B looks solid when compared to its industry's average P/B of 0.91. ABCB's P/B has been as high as 1.28 and as low as 0.53, with a median of 1.14, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ABCB has a P/S ratio of 1.54. This compares to its industry's average P/S of 1.69.
Finally, investors will want to recognize that ABCB has a P/CF ratio of 10.35. 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. This stock's P/CF looks attractive against its industry's average P/CF of 11. ABCB's P/CF has been as high as 18.42 and as low as 8.01, with a median of 11.93, all within the past year.
These are just a handful of the figures considered in Ameris Bancorp'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 ABCB is an impressive value stock right now.
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Are Investors Undervaluing Ameris Bancorp (ABCB) Right Now?
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.
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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Ameris Bancorp (ABCB - Free Report) . ABCB is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.43, which compares to its industry's average of 11.37. Over the past 52 weeks, ABCB's Forward P/E has been as high as 11.65 and as low as 4.73, with a median of 9.35.
We should also highlight that ABCB has a P/B ratio of 0.61. 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 company's current P/B looks solid when compared to its industry's average P/B of 0.91. ABCB's P/B has been as high as 1.28 and as low as 0.53, with a median of 1.14, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ABCB has a P/S ratio of 1.54. This compares to its industry's average P/S of 1.69.
Finally, investors will want to recognize that ABCB has a P/CF ratio of 10.35. 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. This stock's P/CF looks attractive against its industry's average P/CF of 11. ABCB's P/CF has been as high as 18.42 and as low as 8.01, with a median of 11.93, all within the past year.
These are just a handful of the figures considered in Ameris Bancorp'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 ABCB is an impressive value stock right now.