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Is First Community Bancshares (FCBC) a Great Value Stock Right Now?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 to watch right now is First Community Bancshares (FCBC - Free Report) . FCBC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Another notable valuation metric for FCBC is its P/B ratio of 0.89. 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. FCBC's current P/B looks attractive when compared to its industry's average P/B of 0.91. FCBC's P/B has been as high as 1.45 and as low as 0.68, with a median of 0.91, over the past year.

Finally, investors should note that FCBC has a P/CF ratio of 8.71. 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. FCBC's current P/CF looks attractive when compared to its industry's average P/CF of 11. FCBC's P/CF has been as high as 10.80 and as low as 6.37, with a median of 8.47, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that First Community Bancshares is likely undervalued currently. And when considering the strength of its earnings outlook, FCBC sticks out at as one of the market's strongest value stocks.


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