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Should Value Investors Buy The Bancorp (TBBK) Stock?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

The Bancorp (TBBK - Free Report) is a stock many investors are watching right now. TBBK is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.80. This compares to its industry's average Forward P/E of 10.20. Over the past 52 weeks, TBBK's Forward P/E has been as high as 11.90 and as low as 2.67, with a median of 9.33.

Finally, our model also underscores that TBBK has a P/CF ratio of 7.04. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.35. Within the past 12 months, TBBK's P/CF has been as high as 10.24 and as low as 2.69, with a median of 7.11.

These are only a few of the key metrics included in The 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, TBBK looks like an impressive value stock at the moment.


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