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Should Value Investors Buy Northrim BanCorp (NRIM) 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.
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.
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 stock to keep an eye on is Northrim BanCorp (NRIM - Free Report) . NRIM is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.96, which compares to its industry's average of 12.65. NRIM's Forward P/E has been as high as 18.65 and as low as 7.49, with a median of 11.84, all within the past year.
Another notable valuation metric for NRIM is its P/B ratio of 0.98. 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. NRIM's current P/B looks attractive when compared to its industry's average P/B of 1.16. NRIM's P/B has been as high as 1.30 and as low as 0.63, with a median of 0.86, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. NRIM has a P/S ratio of 1.67. This compares to its industry's average P/S of 2.55.
Finally, investors will want to recognize that NRIM has a P/CF ratio of 6.73. 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. NRIM's P/CF compares to its industry's average P/CF of 13.83. Over the past 52 weeks, NRIM's P/CF has been as high as 10.86 and as low as 4.96, with a median of 6.94.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Northrim BanCorp is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NRIM feels like a great value stock at the moment.
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Should Value Investors Buy Northrim BanCorp (NRIM) 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.
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.
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 stock to keep an eye on is Northrim BanCorp (NRIM - Free Report) . NRIM is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.96, which compares to its industry's average of 12.65. NRIM's Forward P/E has been as high as 18.65 and as low as 7.49, with a median of 11.84, all within the past year.
Another notable valuation metric for NRIM is its P/B ratio of 0.98. 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. NRIM's current P/B looks attractive when compared to its industry's average P/B of 1.16. NRIM's P/B has been as high as 1.30 and as low as 0.63, with a median of 0.86, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. NRIM has a P/S ratio of 1.67. This compares to its industry's average P/S of 2.55.
Finally, investors will want to recognize that NRIM has a P/CF ratio of 6.73. 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. NRIM's P/CF compares to its industry's average P/CF of 13.83. Over the past 52 weeks, NRIM's P/CF has been as high as 10.86 and as low as 4.96, with a median of 6.94.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Northrim BanCorp is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NRIM feels like a great value stock at the moment.