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Is Orrstown Financial Services (ORRF) a Great Value Stock Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 Orrstown Financial Services (ORRF - Free Report) . ORRF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

We should also highlight that ORRF has a P/B ratio of 0.78. 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 0.92. ORRF's P/B has been as high as 1.17 and as low as 0.61, with a median of 0.72, over the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ORRF has a P/S ratio of 1.47. This compares to its industry's average P/S of 2.21.

Finally, investors will want to recognize that ORRF has a P/CF ratio of 7.58. 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. ORRF's P/CF compares to its industry's average P/CF of 11.35. ORRF's P/CF has been as high as 14.91 and as low as 6.01, with a median of 7.20, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Orrstown Financial Services is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ORRF feels like a great value stock at the moment.


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