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Should Value Investors Buy These Finance Stocks?

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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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

Ameris Bancorp (ABCB - Free Report) is a stock many investors are watching right now. ABCB is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 10.47, while its industry has an average P/E of 11.62. Over the past 52 weeks, ABCB's Forward P/E has been as high as 13.55 and as low as 9.61, with a median of 11.45.

We should also highlight that ABCB has a P/B ratio of 1.14. 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 1.73. ABCB's P/B has been as high as 1.48 and as low as 1.10, with a median of 1.25, over the past year.

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. ABCB has a P/S ratio of 3.05. This compares to its industry's average P/S of 3.18.

Finally, we should also recognize that ABCB has a P/CF ratio of 8.20. 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. ABCB's P/CF compares to its industry's average P/CF of 11.58. Over the past year, ABCB's P/CF has been as high as 13.34 and as low as 6.98, with a median of 8.63.

Investors could also keep in mind First BanCorp. (FBP - Free Report) , an Banks - Southeast stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

First BanCorp. is trading at a forward earnings multiple of 9.50 at the moment, with a PEG ratio of 0.97. This compares to its industry's average P/E of 11.62 and average PEG ratio of 0.84.


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