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Is Citizens Community Bancorp, Inc. (CZWI) 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.

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.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is Citizens Community Bancorp, Inc. (CZWI - Free Report) . CZWI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 11.36, while its industry has an average P/E of 13.13. Over the last 12 months, CZWI's Forward P/E has been as high as 11.36 and as low as 5.43, with a median of 8.26.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CZWI has a P/S ratio of 1.62. This compares to its industry's average P/S of 2.93.

Finally, our model also underscores that CZWI has a P/CF ratio of 7.16. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.23. CZWI's P/CF has been as high as 7.17 and as low as 3.64, with a median of 4.78, all within the past year.

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


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