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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
The Community Financial is a stock many investors are watching right now. TCFC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 10.03 right now. For comparison, its industry sports an average P/E of 12.64. TCFC's Forward P/E has been as high as 11.39 and as low as 8.68, with a median of 9.65, all within the past year.
Another notable valuation metric for TCFC is its P/B ratio of 1.10. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. TCFC's current P/B looks attractive when compared to its industry's average P/B of 1.78. Over the past 12 months, TCFC's P/B has been as high as 1.13 and as low as 0.71, with a median of 1.04.
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. TCFC has a P/S ratio of 2.81. This compares to its industry's average P/S of 3.06.
Finally, investors will want to recognize that TCFC has a P/CF ratio of 7.87. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. TCFC's P/CF compares to its industry's average P/CF of 17.78. Within the past 12 months, TCFC's P/CF has been as high as 11.04 and as low as 7.27, with a median of 8.23.
These are just a handful of the figures considered in The Community Financial's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that TCFC is an impressive value stock right now.
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Is The Community Financial (TCFC) Stock Undervalued Right Now?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
The Community Financial is a stock many investors are watching right now. TCFC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 10.03 right now. For comparison, its industry sports an average P/E of 12.64. TCFC's Forward P/E has been as high as 11.39 and as low as 8.68, with a median of 9.65, all within the past year.
Another notable valuation metric for TCFC is its P/B ratio of 1.10. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. TCFC's current P/B looks attractive when compared to its industry's average P/B of 1.78. Over the past 12 months, TCFC's P/B has been as high as 1.13 and as low as 0.71, with a median of 1.04.
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. TCFC has a P/S ratio of 2.81. This compares to its industry's average P/S of 3.06.
Finally, investors will want to recognize that TCFC has a P/CF ratio of 7.87. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. TCFC's P/CF compares to its industry's average P/CF of 17.78. Within the past 12 months, TCFC's P/CF has been as high as 11.04 and as low as 7.27, with a median of 8.23.
These are just a handful of the figures considered in The Community Financial's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that TCFC is an impressive value stock right now.