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Should Value Investors Buy First BanCorp. (FBP) Stock?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 to watch right now is First BanCorp. (FBP - Free Report) . FBP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 10.66, which compares to its industry's average of 12.58. Over the past year, FBP's Forward P/E has been as high as 11.80 and as low as 8.45, with a median of 10.02.

Investors should also note that FBP holds a PEG ratio of 0.24. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. FBP's industry currently sports an average PEG of 0.59. FBP's PEG has been as high as 0.72 and as low as 0.24, with a median of 0.27, all within the past year.

We should also highlight that FBP has a P/B ratio of 1.45. 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. This stock's P/B looks solid versus its industry's average P/B of 1.82. Within the past 52 weeks, FBP's P/B has been as high as 1.56 and as low as 0.89, with a median of 1.25.

Finally, our model also underscores that FBP has a P/CF ratio of 10.57. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 16.41. Over the past 52 weeks, FBP's P/CF has been as high as 19.09 and as low as 8.79, with a median of 10.70.

These are only a few of the key metrics included in First BanCorp.'s strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, FBP looks like an impressive value stock at the moment.


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