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Is RBB (RBB) Stock Undervalued Right Now?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

RBB (RBB - Free Report) is a stock many investors are watching right now. RBB is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 8.29 right now. For comparison, its industry sports an average P/E of 13.06. Over the last 12 months, RBB's Forward P/E has been as high as 11.14 and as low as 5.86, with a median of 9.36.

We should also highlight that RBB has a P/B ratio of 0.63. The P/B ratio pits a stock's market value against 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 1.16. Over the past 12 months, RBB's P/B has been as high as 1.10 and as low as 0.55, with a median of 0.94.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. RBB has a P/S ratio of 1.71. This compares to its industry's average P/S of 2.15.

Finally, investors should note that RBB has a P/CF ratio of 6.99. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 13.83. Within the past 12 months, RBB's P/CF has been as high as 10.60 and as low as 5.48, with a median of 9.03.

Value investors will likely look at more than just these metrics, but the above data helps show that RBB is likely undervalued currently. And when considering the strength of its earnings outlook, RBB sticks out at as one of the market's strongest value stocks.


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