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Are Investors Undervaluing Sierra Bancorp (BSRR) 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.

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.

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 stock to keep an eye on is Sierra Bancorp (BSRR - Free Report) . BSRR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 10.57, while its industry has an average P/E of 12.77. BSRR's Forward P/E has been as high as 13.93 and as low as 6.09, with a median of 10.84, all within the past year.

Investors should also note that BSRR holds a PEG ratio of 1.52. 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. BSRR's PEG compares to its industry's average PEG of 1.93. BSRR's PEG has been as high as 1.52 and as low as 1.50, with a median of 1.51, all within the past year.

Another valuation metric that we should highlight is BSRR's P/B ratio of 0.87. 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. This stock's P/B looks attractive against its industry's average P/B of 1.16. Over the past year, BSRR's P/B has been as high as 1.52 and as low as 0.65, with a median of 0.89.

Finally, investors should note that BSRR has a P/CF ratio of 6.38. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their 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, BSRR's P/CF has been as high as 10.08 and as low as 4.31, with a median of 6.39.

These are just a handful of the figures considered in Sierra Bancorp'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 BSRR is an impressive value stock right now.


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