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Are Investors Undervaluing Ameris Bancorp (ABCB) Right Now?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is Ameris Bancorp (ABCB - Free Report) . ABCB is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 9.39, while its industry has an average P/E of 10.22. Over the past year, ABCB's Forward P/E has been as high as 12.55 and as low as 7.74, with a median of 10.40.

Another valuation metric that we should highlight is ABCB's P/B ratio of 1.12. 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. This stock's P/B looks solid versus its industry's average P/B of 1.93. Within the past 52 weeks, ABCB's P/B has been as high as 1.33 and as low as 0.88, with a median of 1.15.

Finally, we should also recognize that ABCB has a P/CF ratio of 8.63. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 12.86. ABCB's P/CF has been as high as 9.06 and as low as 6.75, with a median of 7.92, all within the past year.

Investors could also keep in mind BancorpSouth Bank (CADE - Free Report) , an Banks - Southeast stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Furthermore, BancorpSouth Bank holds a P/B ratio of 0.70 and its industry's price-to-book ratio is 1.93. CADE's P/B has been as high as 1.21, as low as 0.56, with a median of 0.68 over the past 12 months.

These are only a few of the key metrics included in Ameris Bancorp and BancorpSouth Bank strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ABCB and CADE look like an impressive value stock at the moment.


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