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Should Value Investors Buy RBB (RBB) Stock?

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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.

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.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

RBB (RBB - Free Report) is a stock many investors are watching right now. RBB is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.73, which compares to its industry's average of 12.97. RBB's Forward P/E has been as high as 11.14 and as low as 5.86, with a median of 9.13, all within the past year.

Investors should also recognize that RBB has a P/B ratio of 0.61. The P/B is a method of comparing a stock's market value to 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 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 0.74.

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 1.6. This compares to its industry's average P/S of 2.22.

Finally, investors should note that RBB has a P/CF ratio of 6.76. 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 13.83. Within the past 12 months, RBB's P/CF has been as high as 10.71 and as low as 5.48, with a median of 7.29.

These figures are just a handful of the metrics value investors tend to look at, but they help show that RBB is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RBB feels like a great value stock at the moment.


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