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Are These Finance Stocks a Great Value Stocks Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is MainStreet Bank (MNSB - Free Report) . MNSB is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 10.48 right now. For comparison, its industry sports an average P/E of 13.30. Over the past 52 weeks, MNSB's Forward P/E has been as high as 12.26 and as low as 9.21, with a median of 11.12.

We should also highlight that MNSB has a P/B ratio of 1.19. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. MNSB's current P/B looks attractive when compared to its industry's average P/B of 1.80. Within the past 52 weeks, MNSB's P/B has been as high as 1.25 and as low as 0.90, with a median of 1.13.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MNSB has a P/S ratio of 2.59. This compares to its industry's average P/S of 2.99.

Finally, we should also recognize that MNSB has a P/CF ratio of 6.74. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. MNSB's P/CF compares to its industry's average P/CF of 18.18. Within the past 12 months, MNSB's P/CF has been as high as 9.22 and as low as 6.12, with a median of 7.04.

If you're looking for another solid Banks - Northeast value stock, take a look at The Community Financial . TCFC is a # 2 (Buy) stock with a Value score of A.

Furthermore, The Community Financial holds a P/B ratio of 1.09 and its industry's price-to-book ratio is 1.80. TCFC's P/B has been as high as 1.13, as low as 0.71, with a median of 1.04 over the past 12 months.

These are only a few of the key metrics included in MainStreet Bank and The Community Financial strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, MNSB and TCFC look like an impressive value stock at the moment.


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