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Are Investors Undervaluing FB Financial (FBK) 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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 FB Financial (FBK - Free Report) . FBK is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FBK has a P/S ratio of 1.88. This compares to its industry's average P/S of 1.92.

Finally, we should also recognize that FBK has a P/CF ratio of 11.12. 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 stock's P/CF looks attractive against its industry's average P/CF of 11.35. FBK's P/CF has been as high as 13.82 and as low as 4.99, with a median of 10.49, all within the past year.

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


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