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Is Sierra Bancorp (BSRR) a Great Value Stock Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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.

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.

Sierra Bancorp (BSRR - Free Report) is a stock many investors are watching right now. BSRR 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 8.95 right now. For comparison, its industry sports an average P/E of 12.49. BSRR's Forward P/E has been as high as 11.04 and as low as 8.79, with a median of 9.98, all within the past year.

We should also highlight that BSRR has a P/B ratio of 1. 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 1.77. Over the past year, BSRR's P/B has been as high as 1.25 and as low as 0.97, with a median of 1.11.

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. BSRR has a P/S ratio of 2.53. This compares to its industry's average P/S of 3.21.

Finally, we should also recognize that BSRR has a P/CF ratio of 6.88. 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 stock's P/CF looks attractive against its industry's average P/CF of 11.63. BSRR's P/CF has been as high as 8.83 and as low as 6.58, with a median of 7.65, all within the past year.

These are just a handful of the figures considered in Sierra Bancorp'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 BSRR is an impressive value stock right now.


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