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Should Value Investors Buy MainStreet Bank (MNSB) Stock?
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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.
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.
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) and an A for Value. The stock is trading with P/E ratio of 7.83 right now. For comparison, its industry sports an average P/E of 8.96. Over the last 12 months, MNSB's Forward P/E has been as high as 12.02 and as low as 7.68, with a median of 10.24.
Another notable valuation metric for MNSB is its P/B ratio of 1.08. 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 1.68. MNSB's P/B has been as high as 1.25 and as low as 1.05, with a median of 1.16, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MNSB has a P/S ratio of 2.35. This compares to its industry's average P/S of 2.72.
Finally, we should also recognize that MNSB has a P/CF ratio of 7.36. 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 16.32. MNSB's P/CF has been as high as 7.96 and as low as 6.15, with a median of 7.21, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that MainStreet Bank is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MNSB feels like a great value stock at the moment.
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Should Value Investors Buy MainStreet Bank (MNSB) Stock?
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.
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.
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) and an A for Value. The stock is trading with P/E ratio of 7.83 right now. For comparison, its industry sports an average P/E of 8.96. Over the last 12 months, MNSB's Forward P/E has been as high as 12.02 and as low as 7.68, with a median of 10.24.
Another notable valuation metric for MNSB is its P/B ratio of 1.08. 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 1.68. MNSB's P/B has been as high as 1.25 and as low as 1.05, with a median of 1.16, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MNSB has a P/S ratio of 2.35. This compares to its industry's average P/S of 2.72.
Finally, we should also recognize that MNSB has a P/CF ratio of 7.36. 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 16.32. MNSB's P/CF has been as high as 7.96 and as low as 6.15, with a median of 7.21, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that MainStreet Bank is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MNSB feels like a great value stock at the moment.