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Are Investors Undervaluing MainStreet Bank (MNSB) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
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.
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 is trading with a P/E ratio of 8.64, which compares to its industry's average of 9.62. Over the last 12 months, MNSB's Forward P/E has been as high as 12.26 and as low as 8.64, with a median of 10.49.
Investors should also recognize that MNSB has a P/B ratio of 1.17. 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. MNSB's current P/B looks attractive when compared to its industry's average P/B of 1.49. Within the past 52 weeks, MNSB's P/B has been as high as 1.25 and as low as 1.09, with a median of 1.17.
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. MNSB has a P/S ratio of 2.62. This compares to its industry's average P/S of 2.8.
Finally, our model also underscores that MNSB has a P/CF ratio of 7.59. 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 stock's P/CF looks attractive against its industry's average P/CF of 14.19. Over the past 52 weeks, MNSB's P/CF has been as high as 8.71 and as low as 6.12, with a median of 7.10.
Value investors will likely look at more than just these metrics, but the above data helps show that MainStreet Bank is likely undervalued currently. And when considering the strength of its earnings outlook, MNSB sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing MainStreet Bank (MNSB) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
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.
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 is trading with a P/E ratio of 8.64, which compares to its industry's average of 9.62. Over the last 12 months, MNSB's Forward P/E has been as high as 12.26 and as low as 8.64, with a median of 10.49.
Investors should also recognize that MNSB has a P/B ratio of 1.17. 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. MNSB's current P/B looks attractive when compared to its industry's average P/B of 1.49. Within the past 52 weeks, MNSB's P/B has been as high as 1.25 and as low as 1.09, with a median of 1.17.
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. MNSB has a P/S ratio of 2.62. This compares to its industry's average P/S of 2.8.
Finally, our model also underscores that MNSB has a P/CF ratio of 7.59. 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 stock's P/CF looks attractive against its industry's average P/CF of 14.19. Over the past 52 weeks, MNSB's P/CF has been as high as 8.71 and as low as 6.12, with a median of 7.10.
Value investors will likely look at more than just these metrics, but the above data helps show that MainStreet Bank is likely undervalued currently. And when considering the strength of its earnings outlook, MNSB sticks out at as one of the market's strongest value stocks.