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Is CF Bankshares (CFBK) Stock Undervalued Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
CF Bankshares (CFBK - Free Report) is a stock many investors are watching right now. CFBK is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.31. This compares to its industry's average Forward P/E of 10.34. Over the last 12 months, CFBK's Forward P/E has been as high as 10.97 and as low as 6.23, with a median of 7.62.
Another notable valuation metric for CFBK is its P/B ratio of 0.88. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.75. Over the past year, CFBK's P/B has been as high as 1 and as low as 0.83, with a median of 0.89.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CFBK has a P/S ratio of 1.71. This compares to its industry's average P/S of 2.84.
Finally, we should also recognize that CFBK has a P/CF ratio of 8.44. 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 13.68. Over the past year, CFBK's P/CF has been as high as 9.07 and as low as 3.76, with a median of 6.97.
First United (FUNC - Free Report) may be another strong Banks - Northeast stock to add to your shortlist. FUNC is a # 2 (Buy) stock with a Value grade of A.
Additionally, First United has a P/B ratio of 1.07 while its industry's price-to-book ratio sits at 1.75. For FUNC, this valuation metric has been as high as 1.11, as low as 0.82, with a median of 0.95 over the past year.
These are just a handful of the figures considered in CF Bankshares and First United'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 CFBK and FUNC is an impressive value stock right now.
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Is CF Bankshares (CFBK) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
CF Bankshares (CFBK - Free Report) is a stock many investors are watching right now. CFBK is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.31. This compares to its industry's average Forward P/E of 10.34. Over the last 12 months, CFBK's Forward P/E has been as high as 10.97 and as low as 6.23, with a median of 7.62.
Another notable valuation metric for CFBK is its P/B ratio of 0.88. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.75. Over the past year, CFBK's P/B has been as high as 1 and as low as 0.83, with a median of 0.89.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CFBK has a P/S ratio of 1.71. This compares to its industry's average P/S of 2.84.
Finally, we should also recognize that CFBK has a P/CF ratio of 8.44. 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 13.68. Over the past year, CFBK's P/CF has been as high as 9.07 and as low as 3.76, with a median of 6.97.
First United (FUNC - Free Report) may be another strong Banks - Northeast stock to add to your shortlist. FUNC is a # 2 (Buy) stock with a Value grade of A.
Additionally, First United has a P/B ratio of 1.07 while its industry's price-to-book ratio sits at 1.75. For FUNC, this valuation metric has been as high as 1.11, as low as 0.82, with a median of 0.95 over the past year.
These are just a handful of the figures considered in CF Bankshares and First United'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 CFBK and FUNC is an impressive value stock right now.