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Should Value Investors Buy CF Bankshares (CFBK) Stock?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 stock to keep an eye on is CF Bankshares (CFBK - Free Report) . CFBK is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 7.06 right now. For comparison, its industry sports an average P/E of 8.44. Over the past year, CFBK's Forward P/E has been as high as 10.97 and as low as 6.15, with a median of 7.23.

Another notable valuation metric for CFBK is its P/B ratio of 0.84. 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 stock's P/B looks attractive against its industry's average P/B of 1.51. Within the past 52 weeks, CFBK's P/B has been as high as 1 and as low as 0.81, with a median of 0.86.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CFBK has a P/S ratio of 1.93. This compares to its industry's average P/S of 2.77.

Finally, investors should note that CFBK has a P/CF ratio of 8.11. 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 15.32. Over the past year, CFBK's P/CF has been as high as 9.75 and as low as 6.80, with a median of 8.21.

These are only a few of the key metrics included in CF Bankshares's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CFBK looks like an impressive value stock at the moment.

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