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Is CF Bankshares (CFBK) Stock Undervalued 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.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 stock to keep an eye on is CF Bankshares (CFBK - Free Report) . CFBK 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 7.91, which compares to its industry's average of 12.71. Over the past 52 weeks, CFBK's Forward P/E has been as high as 10.97 and as low as 6.15, with a median of 7.62.

Another valuation metric that we should highlight is CFBK's P/B ratio of 0.92. 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. This company's current P/B looks solid when compared to its industry's average P/B of 1.91. Within the past 52 weeks, CFBK's P/B has been as high as 1 and as low as 0.83, with a median of 0.89.

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. CFBK has a P/S ratio of 1.78. This compares to its industry's average P/S of 2.96.

Finally, we should also recognize that CFBK has a P/CF ratio of 7.45. 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 stock's P/CF looks attractive against its industry's average P/CF of 18.41. Over the past year, CFBK's P/CF has been as high as 7.99 and as low as 3.76, with a median of 5.04.

These are just a handful of the figures considered in CF Bankshares'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 CFBK is an impressive value stock right now.


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