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Is MainStreet Bank (MNSB) a Great Value Stock Right Now?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is MainStreet Bank (MNSB - Free Report) . MNSB is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 9.81. This compares to its industry's average Forward P/E of 11.96. Over the past 52 weeks, MNSB's Forward P/E has been as high as 12.26 and as low as 9.46, with a median of 10.92.

We should also highlight that MNSB has a P/B ratio of 1.19. 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 1.63. Within the past 52 weeks, MNSB's P/B has been as high as 1.25 and as low as 1.07, with a median of 1.17.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MNSB has a P/S ratio of 2.69. This compares to its industry's average P/S of 2.93.

Finally, we should also recognize that MNSB has a P/CF ratio of 7.56. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.58. Over the past year, MNSB's P/CF has been as high as 9.12 and as low as 6.12, with a median of 7.14.

These are only a few of the key metrics included in MainStreet Bank'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, MNSB looks like an impressive value stock at the moment.


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