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Are These Finance Stocks a Great Value Stocks 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.
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company value investors might notice is BancorpSouth Bank (CADE - Free Report) . CADE is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 13.25. This compares to its industry's average Forward P/E of 13.72. Over the last 12 months, CADE's Forward P/E has been as high as 15.94 and as low as 9.99, with a median of 12.03.
Investors should also recognize that CADE has a P/B ratio of 1.25. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.97. Over the past 12 months, CADE's P/B has been as high as 1.35 and as low as 0.94, with a median of 1.15.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CADE has a P/S ratio of 3.17. This compares to its industry's average P/S of 3.41.
Finally, our model also underscores that CADE has a P/CF ratio of 9.02. 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. CADE's current P/CF looks attractive when compared to its industry's average P/CF of 17.77. Within the past 12 months, CADE's P/CF has been as high as 12.31 and as low as 6.90, with a median of 8.46.
First Community (FCCO - Free Report) may be another strong Banks - Southeast stock to add to your shortlist. FCCO is a # 2 (Buy) stock with a Value grade of A.
First Community also has a P/B ratio of 1.15 compared to its industry's price-to-book ratio of 1.97. Over the past year, its P/B ratio has been as high as 1.21, as low as 0.90, with a median of 1.11.
These figures are just a handful of the metrics value investors tend to look at, but they help show that BancorpSouth Bank and First Community are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CADE and FCCO feels like a great value stock at the moment.
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Are These Finance Stocks a Great Value Stocks Right Now?
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.
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company value investors might notice is BancorpSouth Bank (CADE - Free Report) . CADE is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 13.25. This compares to its industry's average Forward P/E of 13.72. Over the last 12 months, CADE's Forward P/E has been as high as 15.94 and as low as 9.99, with a median of 12.03.
Investors should also recognize that CADE has a P/B ratio of 1.25. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.97. Over the past 12 months, CADE's P/B has been as high as 1.35 and as low as 0.94, with a median of 1.15.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CADE has a P/S ratio of 3.17. This compares to its industry's average P/S of 3.41.
Finally, our model also underscores that CADE has a P/CF ratio of 9.02. 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. CADE's current P/CF looks attractive when compared to its industry's average P/CF of 17.77. Within the past 12 months, CADE's P/CF has been as high as 12.31 and as low as 6.90, with a median of 8.46.
First Community (FCCO - Free Report) may be another strong Banks - Southeast stock to add to your shortlist. FCCO is a # 2 (Buy) stock with a Value grade of A.
First Community also has a P/B ratio of 1.15 compared to its industry's price-to-book ratio of 1.97. Over the past year, its P/B ratio has been as high as 1.21, as low as 0.90, with a median of 1.11.
These figures are just a handful of the metrics value investors tend to look at, but they help show that BancorpSouth Bank and First Community are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CADE and FCCO feels like a great value stock at the moment.