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Is Old Second Bancorp (OSBC) a Great Value Stock 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.
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 Old Second Bancorp (OSBC - Free Report) . OSBC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
We should also highlight that OSBC has a P/B ratio of 1.02. The P/B ratio pits a stock's market value against 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 0.88.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. OSBC has a P/S ratio of 1.97. This compares to its industry's average P/S of 2.21.
Finally, we should also recognize that OSBC has a P/CF ratio of 8.83. 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. OSBC's P/CF compares to its industry's average P/CF of 13.36. Over the past year, OSBC's P/CF has been as high as 9.65 and as low as 4.27, with a median of 6.96.
These are only a few of the key metrics included in Old Second Bancorp's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, OSBC looks like an impressive value stock at the moment.
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Is Old Second Bancorp (OSBC) a Great Value Stock Right Now?
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.
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 Old Second Bancorp (OSBC - Free Report) . OSBC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
We should also highlight that OSBC has a P/B ratio of 1.02. The P/B ratio pits a stock's market value against 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 0.88.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. OSBC has a P/S ratio of 1.97. This compares to its industry's average P/S of 2.21.
Finally, we should also recognize that OSBC has a P/CF ratio of 8.83. 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. OSBC's P/CF compares to its industry's average P/CF of 13.36. Over the past year, OSBC's P/CF has been as high as 9.65 and as low as 4.27, with a median of 6.96.
These are only a few of the key metrics included in Old Second Bancorp's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, OSBC looks like an impressive value stock at the moment.