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Are Investors Undervaluing Waterstone Financial (WSBF) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Waterstone Financial (WSBF - Free Report) is a stock many investors are watching right now. WSBF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. WSBF has a P/S ratio of 1.79. This compares to its industry's average P/S of 2.68.
Finally, our model also underscores that WSBF has a P/CF ratio of 8.11. 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. WSBF's current P/CF looks attractive when compared to its industry's average P/CF of 8.98. WSBF's P/CF has been as high as 8.63 and as low as 5.74, with a median of 7, 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 Waterstone Financial is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, WSBF feels like a great value stock at the moment.
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Are Investors Undervaluing Waterstone Financial (WSBF) Right Now?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Waterstone Financial (WSBF - Free Report) is a stock many investors are watching right now. WSBF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. WSBF has a P/S ratio of 1.79. This compares to its industry's average P/S of 2.68.
Finally, our model also underscores that WSBF has a P/CF ratio of 8.11. 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. WSBF's current P/CF looks attractive when compared to its industry's average P/CF of 8.98. WSBF's P/CF has been as high as 8.63 and as low as 5.74, with a median of 7, 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 Waterstone Financial is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, WSBF feels like a great value stock at the moment.