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Are Investors Undervaluing Midland States Bancorp (MSBI) 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.

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 stock to keep an eye on is Midland States Bancorp (MSBI - Free Report) . MSBI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 9.34, while its industry has an average P/E of 10.76. Over the last 12 months, MSBI's Forward P/E has been as high as 10.87 and as low as 5.17, with a median of 8.59.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MSBI has a P/S ratio of 1.99. This compares to its industry's average P/S of 2.77.

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


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