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Is Old Second Bancorp (OSBC) a Great Value Stock Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company to watch right now is Old Second Bancorp (OSBC - Free Report) . OSBC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 11.82. This compares to its industry's average Forward P/E of 12.85. Over the past year, OSBC's Forward P/E has been as high as 15.31 and as low as 5.69, with a median of 10.41.
Investors should also note that OSBC holds a PEG ratio of 1.45. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. OSBC's PEG compares to its industry's average PEG of 2.21. OSBC's PEG has been as high as 1.49 and as low as 1.33, with a median of 1.40, all within the past year.
Investors should also recognize that OSBC has a P/B ratio of 0.83. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.41. Over the past year, OSBC's P/B has been as high as 1.54 and as low as 0.67, with a median of 1.35.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. OSBC has a P/S ratio of 1.44. This compares to its industry's average P/S of 1.73.
Finally, our model also underscores that OSBC has a P/CF ratio of 6.14. 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. OSBC's current P/CF looks attractive when compared to its industry's average P/CF of 13.36. Within the past 12 months, OSBC's P/CF has been as high as 9.79 and as low as 4.27, with a median of 8.65.
These are only a few of the key metrics included in Old Second Bancorp's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, OSBC looks like an impressive value stock at the moment.
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Is Old Second Bancorp (OSBC) a Great Value Stock Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company to watch right now is Old Second Bancorp (OSBC - Free Report) . OSBC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 11.82. This compares to its industry's average Forward P/E of 12.85. Over the past year, OSBC's Forward P/E has been as high as 15.31 and as low as 5.69, with a median of 10.41.
Investors should also note that OSBC holds a PEG ratio of 1.45. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. OSBC's PEG compares to its industry's average PEG of 2.21. OSBC's PEG has been as high as 1.49 and as low as 1.33, with a median of 1.40, all within the past year.
Investors should also recognize that OSBC has a P/B ratio of 0.83. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.41. Over the past year, OSBC's P/B has been as high as 1.54 and as low as 0.67, with a median of 1.35.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. OSBC has a P/S ratio of 1.44. This compares to its industry's average P/S of 1.73.
Finally, our model also underscores that OSBC has a P/CF ratio of 6.14. 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. OSBC's current P/CF looks attractive when compared to its industry's average P/CF of 13.36. Within the past 12 months, OSBC's P/CF has been as high as 9.79 and as low as 4.27, with a median of 8.65.
These are only a few of the key metrics included in Old Second Bancorp's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, OSBC looks like an impressive value stock at the moment.