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Is Orrstown Financial Services (ORRF) 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

Orrstown Financial Services (ORRF - Free Report) is a stock many investors are watching right now. ORRF is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Another valuation metric that we should highlight is ORRF's P/B ratio of 1.07. 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 attractive against its industry's average P/B of 1.39. Over the past 12 months, ORRF's P/B has been as high as 1.11 and as low as 0.93, with a median of 1.

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. ORRF has a P/S ratio of 2.2. This compares to its industry's average P/S of 2.7.

Finally, investors will want to recognize that ORRF has a P/CF ratio of 7.36. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. ORRF's P/CF compares to its industry's average P/CF of 13.13. Over the past year, ORRF's P/CF has been as high as 8.01 and as low as 6.56, with a median of 6.99.

These are just a handful of the figures considered in Orrstown Financial Services'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 ORRF is an impressive value stock right now.


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