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Are These Finance Stocks a Great Value Stocks Right Now?
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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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is FS Bancorp (FSBW - Free Report) . FSBW is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.46. This compares to its industry's average Forward P/E of 14.83. FSBW's Forward P/E has been as high as 11.62 and as low as 8.13, with a median of 10.05, all within the past year.
Another notable valuation metric for FSBW is its P/B ratio of 1.10. 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 solid versus its industry's average P/B of 2.07. Within the past 52 weeks, FSBW's P/B has been as high as 1.35 and as low as 1.09, with a median of 1.19.
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. FSBW has a P/S ratio of 1.98. This compares to its industry's average P/S of 3.54.
Finally, our model also underscores that FSBW has a P/CF ratio of 5.08. 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. FSBW's P/CF compares to its industry's average P/CF of 13.44. Within the past 12 months, FSBW's P/CF has been as high as 6.03 and as low as 4.43, with a median of 5.05.
RBB Bancorp (RBB - Free Report) may be another strong Banks - West stock to add to your shortlist. RBB is a # 1 (Strong Buy) stock with a Value grade of A.
RBB Bancorp also has a P/B ratio of 1.10 compared to its industry's price-to-book ratio of 2.07. Over the past year, its P/B ratio has been as high as 1.22, as low as 0.85, with a median of 1.08.
These figures are just a handful of the metrics value investors tend to look at, but they help show that FS Bancorp and RBB Bancorp are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FSBW and RBB 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, 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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is FS Bancorp (FSBW - Free Report) . FSBW is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.46. This compares to its industry's average Forward P/E of 14.83. FSBW's Forward P/E has been as high as 11.62 and as low as 8.13, with a median of 10.05, all within the past year.
Another notable valuation metric for FSBW is its P/B ratio of 1.10. 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 solid versus its industry's average P/B of 2.07. Within the past 52 weeks, FSBW's P/B has been as high as 1.35 and as low as 1.09, with a median of 1.19.
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. FSBW has a P/S ratio of 1.98. This compares to its industry's average P/S of 3.54.
Finally, our model also underscores that FSBW has a P/CF ratio of 5.08. 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. FSBW's P/CF compares to its industry's average P/CF of 13.44. Within the past 12 months, FSBW's P/CF has been as high as 6.03 and as low as 4.43, with a median of 5.05.
RBB Bancorp (RBB - Free Report) may be another strong Banks - West stock to add to your shortlist. RBB is a # 1 (Strong Buy) stock with a Value grade of A.
RBB Bancorp also has a P/B ratio of 1.10 compared to its industry's price-to-book ratio of 2.07. Over the past year, its P/B ratio has been as high as 1.22, as low as 0.85, with a median of 1.08.
These figures are just a handful of the metrics value investors tend to look at, but they help show that FS Bancorp and RBB Bancorp are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FSBW and RBB feels like a great value stock at the moment.