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Is First BanCorp. (FBP) 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.
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.
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 company to watch right now is First BanCorp. (FBP - Free Report) . FBP is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 7.89. This compares to its industry's average Forward P/E of 9.04. FBP's Forward P/E has been as high as 11.46 and as low as 7.89, with a median of 9.30, all within the past year.
Another notable valuation metric for FBP is its P/B ratio of 1.71. 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. This company's current P/B looks solid when compared to its industry's average P/B of 1.78. Over the past 12 months, FBP's P/B has been as high as 2.06 and as low as 1.17, with a median of 1.46.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FBP has a P/S ratio of 2.74. This compares to its industry's average P/S of 2.88.
Finally, investors will want to recognize that FBP has a P/CF ratio of 7.93. 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. This stock's P/CF looks attractive against its industry's average P/CF of 11.51. Over the past year, FBP's P/CF has been as high as 11.13 and as low as 7.61, with a median of 8.89.
If you're looking for another solid Banks - Southeast value stock, take a look at South Plains Financial (SPFI - Free Report) . SPFI is a # 2 (Buy) stock with a Value score of A.
South Plains Financial also has a P/B ratio of 1.32 compared to its industry's price-to-book ratio of 1.78. Over the past year, its P/B ratio has been as high as 1.37, as low as 1.03, with a median of 1.19.
These figures are just a handful of the metrics value investors tend to look at, but they help show that First BanCorp. and South Plains Financial are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FBP and SPFI feels like a great value stock at the moment.
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Is First BanCorp. (FBP) Stock Undervalued Right Now?
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.
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.
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 company to watch right now is First BanCorp. (FBP - Free Report) . FBP is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 7.89. This compares to its industry's average Forward P/E of 9.04. FBP's Forward P/E has been as high as 11.46 and as low as 7.89, with a median of 9.30, all within the past year.
Another notable valuation metric for FBP is its P/B ratio of 1.71. 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. This company's current P/B looks solid when compared to its industry's average P/B of 1.78. Over the past 12 months, FBP's P/B has been as high as 2.06 and as low as 1.17, with a median of 1.46.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FBP has a P/S ratio of 2.74. This compares to its industry's average P/S of 2.88.
Finally, investors will want to recognize that FBP has a P/CF ratio of 7.93. 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. This stock's P/CF looks attractive against its industry's average P/CF of 11.51. Over the past year, FBP's P/CF has been as high as 11.13 and as low as 7.61, with a median of 8.89.
If you're looking for another solid Banks - Southeast value stock, take a look at South Plains Financial (SPFI - Free Report) . SPFI is a # 2 (Buy) stock with a Value score of A.
South Plains Financial also has a P/B ratio of 1.32 compared to its industry's price-to-book ratio of 1.78. Over the past year, its P/B ratio has been as high as 1.37, as low as 1.03, with a median of 1.19.
These figures are just a handful of the metrics value investors tend to look at, but they help show that First BanCorp. and South Plains Financial are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FBP and SPFI feels like a great value stock at the moment.