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Should Value Investors Buy RBB Bancorp (RBB) Stock?
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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.
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 RBB Bancorp (RBB - Free Report) . RBB is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 7.28 right now. For comparison, its industry sports an average P/E of 14.89. Over the last 12 months, RBB's Forward P/E has been as high as 9.83 and as low as 6.87, with a median of 8.85.
Another notable valuation metric for RBB is its P/B ratio of 0.98. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. RBB's current P/B looks attractive when compared to its industry's average P/B of 2.09. Within the past 52 weeks, RBB's P/B has been as high as 1.22 and as low as 0.86, with a median of 1.08.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. RBB has a P/S ratio of 2.84. This compares to its industry's average P/S of 3.52.
Finally, investors will want to recognize that RBB has a P/CF ratio of 6.60. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.54. RBB's P/CF has been as high as 11.69 and as low as 6.18, with a median of 8.43, all within the past year.
These are only a few of the key metrics included in RBB 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, RBB looks like an impressive value stock at the moment.
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Should Value Investors Buy RBB Bancorp (RBB) Stock?
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.
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 RBB Bancorp (RBB - Free Report) . RBB is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 7.28 right now. For comparison, its industry sports an average P/E of 14.89. Over the last 12 months, RBB's Forward P/E has been as high as 9.83 and as low as 6.87, with a median of 8.85.
Another notable valuation metric for RBB is its P/B ratio of 0.98. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. RBB's current P/B looks attractive when compared to its industry's average P/B of 2.09. Within the past 52 weeks, RBB's P/B has been as high as 1.22 and as low as 0.86, with a median of 1.08.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. RBB has a P/S ratio of 2.84. This compares to its industry's average P/S of 3.52.
Finally, investors will want to recognize that RBB has a P/CF ratio of 6.60. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.54. RBB's P/CF has been as high as 11.69 and as low as 6.18, with a median of 8.43, all within the past year.
These are only a few of the key metrics included in RBB 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, RBB looks like an impressive value stock at the moment.