Back to top

Image: Bigstock

Should Value Investors Buy Citizens Community Bancorp, Inc. (CZWI) Stock?

Read MoreHide Full Article

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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 value investors might notice is Citizens Community Bancorp, Inc. (CZWI - Free Report) . CZWI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 9.98, which compares to its industry's average of 13.36. Over the past year, CZWI's Forward P/E has been as high as 10.43 and as low as 5.09, with a median of 8.13.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CZWI has a P/S ratio of 1.51. This compares to its industry's average P/S of 2.99.

Finally, investors should note that CZWI has a P/CF ratio of 6.43. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CZWI's P/CF compares to its industry's average P/CF of 8.23. CZWI's P/CF has been as high as 8.18 and as low as 3.64, with a median of 4.78, 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 Citizens Community Bancorp, Inc. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CZWI feels like a great value stock at the moment.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Citizens Community Bancorp, Inc. (CZWI) - free report >>

Published in