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Is RBB Bancorp (RBB) a Great Value Stock 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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

RBB Bancorp (RBB - Free Report) is a stock many investors are watching right now. RBB is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 6.56, while its industry has an average P/E of 10.49. RBB's Forward P/E has been as high as 9.80 and as low as 6.24, with a median of 7.88, all within the past year.

Another notable valuation metric for RBB is its P/B ratio of 0.92. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. RBB's current P/B looks attractive when compared to its industry's average P/B of 1.75. Over the past year, RBB's P/B has been as high as 1.20 and as low as 0.84, with a median of 1.03.

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. RBB has a P/S ratio of 2.44. This compares to its industry's average P/S of 2.82.

Finally, investors will want to recognize that RBB has a P/CF ratio of 5.78. 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. RBB's P/CF compares to its industry's average P/CF of 10.93. RBB's P/CF has been as high as 9.07 and as low as 5.38, with a median of 7.03, 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 RBB Bancorp is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RBB feels like a great value stock at the moment.


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