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Is RBB (RBB) 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

One company to watch right now is RBB (RBB - Free Report) . RBB is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 6.66 right now. For comparison, its industry sports an average P/E of 12.88. RBB's Forward P/E has been as high as 11.14 and as low as 5.86, with a median of 8.93, all within the past year.

We should also highlight that RBB has a P/B ratio of 0.53. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. RBB's current P/B looks attractive when compared to its industry's average P/B of 1.16. Within the past 52 weeks, RBB's P/B has been as high as 1.10 and as low as 0.52, with a median of 0.68.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. RBB has a P/S ratio of 1.43. This compares to its industry's average P/S of 1.97.

Finally, our model also underscores that RBB has a P/CF ratio of 5.88. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.83. Over the past 52 weeks, RBB's P/CF has been as high as 10.71 and as low as 5.48, with a median of 7.13.

These are just a handful of the figures considered in RBB's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that RBB is an impressive value stock right now.


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