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Should Value Investors Buy Old Second Bancorp (OSBC) Stock?
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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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Old Second Bancorp (OSBC - Free Report) . OSBC 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 11.32 right now. For comparison, its industry sports an average P/E of 12.20. Over the past year, OSBC's Forward P/E has been as high as 15.31 and as low as 5.69, with a median of 10.72.
Investors will also notice that OSBC has a PEG ratio of 1.45. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. OSBC's industry currently sports an average PEG of 2.09.
Investors should also recognize that OSBC has a P/B ratio of 0.94. 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 stock's P/B looks attractive against its industry's average P/B of 1.41. Over the past year, OSBC's P/B has been as high as 1.50 and as low as 0.67, with a median of 0.89.
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. OSBC has a P/S ratio of 1.84. This compares to its industry's average P/S of 2.01.
Finally, our model also underscores that OSBC has a P/CF ratio of 7.46. 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 stock's P/CF looks attractive against its industry's average P/CF of 13.36. OSBC's P/CF has been as high as 9.65 and as low as 4.27, with a median of 6.95, all within the past year.
These are just a handful of the figures considered in Old Second 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 OSBC is an impressive value stock right now.
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Should Value Investors Buy Old Second Bancorp (OSBC) Stock?
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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Old Second Bancorp (OSBC - Free Report) . OSBC 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 11.32 right now. For comparison, its industry sports an average P/E of 12.20. Over the past year, OSBC's Forward P/E has been as high as 15.31 and as low as 5.69, with a median of 10.72.
Investors will also notice that OSBC has a PEG ratio of 1.45. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. OSBC's industry currently sports an average PEG of 2.09.
Investors should also recognize that OSBC has a P/B ratio of 0.94. 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 stock's P/B looks attractive against its industry's average P/B of 1.41. Over the past year, OSBC's P/B has been as high as 1.50 and as low as 0.67, with a median of 0.89.
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. OSBC has a P/S ratio of 1.84. This compares to its industry's average P/S of 2.01.
Finally, our model also underscores that OSBC has a P/CF ratio of 7.46. 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 stock's P/CF looks attractive against its industry's average P/CF of 13.36. OSBC's P/CF has been as high as 9.65 and as low as 4.27, with a median of 6.95, all within the past year.
These are just a handful of the figures considered in Old Second 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 OSBC is an impressive value stock right now.