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Are Investors Undervaluing FS Bancorp (FSBW) 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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 FS Bancorp (FSBW - Free Report) . FSBW is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 8.01, while its industry has an average P/E of 13.07. Over the past year, FSBW's Forward P/E has been as high as 12.09 and as low as 5.77, with a median of 9.21.
Investors should also note that FSBW holds a PEG ratio of 1.33. 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. FSBW's PEG compares to its industry's average PEG of 1.98. FSBW's PEG has been as high as 1.37 and as low as 1.24, with a median of 1.29, all within the past year.
Investors should also recognize that FSBW has a P/B ratio of 0.84. 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. FSBW's current P/B looks attractive when compared to its industry's average P/B of 1.16. Over the past 12 months, FSBW's P/B has been as high as 1.47 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. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FSBW has a P/S ratio of 1.39. This compares to its industry's average P/S of 2.15.
Finally, investors will want to recognize that FSBW has a P/CF ratio of 4.13. 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. FSBW's P/CF compares to its industry's average P/CF of 13.83. Over the past year, FSBW's P/CF has been as high as 8.28 and as low as 3.44, with a median of 6.12.
These figures are just a handful of the metrics value investors tend to look at, but they help show that FS Bancorp is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FSBW feels like a great value stock at the moment.
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Are Investors Undervaluing FS Bancorp (FSBW) 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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 FS Bancorp (FSBW - Free Report) . FSBW is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 8.01, while its industry has an average P/E of 13.07. Over the past year, FSBW's Forward P/E has been as high as 12.09 and as low as 5.77, with a median of 9.21.
Investors should also note that FSBW holds a PEG ratio of 1.33. 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. FSBW's PEG compares to its industry's average PEG of 1.98. FSBW's PEG has been as high as 1.37 and as low as 1.24, with a median of 1.29, all within the past year.
Investors should also recognize that FSBW has a P/B ratio of 0.84. 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. FSBW's current P/B looks attractive when compared to its industry's average P/B of 1.16. Over the past 12 months, FSBW's P/B has been as high as 1.47 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. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FSBW has a P/S ratio of 1.39. This compares to its industry's average P/S of 2.15.
Finally, investors will want to recognize that FSBW has a P/CF ratio of 4.13. 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. FSBW's P/CF compares to its industry's average P/CF of 13.83. Over the past year, FSBW's P/CF has been as high as 8.28 and as low as 3.44, with a median of 6.12.
These figures are just a handful of the metrics value investors tend to look at, but they help show that FS Bancorp is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FSBW feels like a great value stock at the moment.