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Should Value Investors Buy Ameris Bancorp (ABCB) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One stock to keep an eye on is Ameris Bancorp (ABCB - Free Report) . ABCB 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 9.03, while its industry has an average P/E of 9.11. 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 9.39.
Another notable valuation metric for ABCB is its P/B ratio of 1.08. 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 attractive against its industry's average P/B of 1.82. Over the past year, ABCB's P/B has been as high as 1.33 and as low as 0.88, with a median of 1.09.
Finally, investors will want to recognize that ABCB has a P/CF ratio of 8.35. 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. ABCB's P/CF compares to its industry's average P/CF of 11.76. Over the past 52 weeks, ABCB's P/CF has been as high as 9.06 and as low as 6.75, with a median of 8.05.
These are just a handful of the figures considered in Ameris Bancorp's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ABCB is an impressive value stock right now.