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Is Independent Bank (IBCP) a Great Value Stock Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Independent Bank (IBCP - Free Report) . IBCP is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 8.80. This compares to its industry's average Forward P/E of 12.08. Over the past year, IBCP's Forward P/E has been as high as 11.83 and as low as 4.81, with a median of 9.55.
Investors should also note that IBCP holds a PEG ratio of 1.34. 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. IBCP's industry currently sports an average PEG of 2.07.
Another notable valuation metric for IBCP is its P/B ratio of 1.07. 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 solid versus its industry's average P/B of 1.41. Over the past year, IBCP's P/B has been as high as 1.58 and as low as 0.62, with a median of 0.93.
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. IBCP has a P/S ratio of 1.7. This compares to its industry's average P/S of 2.15.
Finally, our model also underscores that IBCP has a P/CF ratio of 6.39. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. IBCP's current P/CF looks attractive when compared to its industry's average P/CF of 13.36. IBCP's P/CF has been as high as 10.78 and as low as 4.18, with a median of 6.35, all within the past year.
These are just a handful of the figures considered in Independent Bank'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 IBCP is an impressive value stock right now.
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Is Independent Bank (IBCP) a Great Value Stock Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Independent Bank (IBCP - Free Report) . IBCP is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 8.80. This compares to its industry's average Forward P/E of 12.08. Over the past year, IBCP's Forward P/E has been as high as 11.83 and as low as 4.81, with a median of 9.55.
Investors should also note that IBCP holds a PEG ratio of 1.34. 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. IBCP's industry currently sports an average PEG of 2.07.
Another notable valuation metric for IBCP is its P/B ratio of 1.07. 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 solid versus its industry's average P/B of 1.41. Over the past year, IBCP's P/B has been as high as 1.58 and as low as 0.62, with a median of 0.93.
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. IBCP has a P/S ratio of 1.7. This compares to its industry's average P/S of 2.15.
Finally, our model also underscores that IBCP has a P/CF ratio of 6.39. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. IBCP's current P/CF looks attractive when compared to its industry's average P/CF of 13.36. IBCP's P/CF has been as high as 10.78 and as low as 4.18, with a median of 6.35, all within the past year.
These are just a handful of the figures considered in Independent Bank'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 IBCP is an impressive value stock right now.