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Are Investors Undervaluing OFG Bancorp (OFG) Right Now?
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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 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.
OFG Bancorp (OFG - Free Report) is a stock many investors are watching right now. OFG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 8.27 right now. For comparison, its industry sports an average P/E of 8.77. OFG's Forward P/E has been as high as 11.09 and as low as 7.18, with a median of 8.57, all within the past year.
Investors should also recognize that OFG has a P/B ratio of 1.39. 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 1.57. Over the past year, OFG's P/B has been as high as 1.42 and as low as 1.17, with a median of 1.28.
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. OFG has a P/S ratio of 2.19. This compares to its industry's average P/S of 2.79.
Finally, we should also recognize that OFG has a P/CF ratio of 8.31. 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. OFG's current P/CF looks attractive when compared to its industry's average P/CF of 14.98. Over the past year, OFG's P/CF has been as high as 9.32 and as low as 7.17, with a median of 7.97.
These are just a handful of the figures considered in OFG 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 OFG is an impressive value stock right now.
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Are Investors Undervaluing OFG Bancorp (OFG) Right Now?
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 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.
OFG Bancorp (OFG - Free Report) is a stock many investors are watching right now. OFG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 8.27 right now. For comparison, its industry sports an average P/E of 8.77. OFG's Forward P/E has been as high as 11.09 and as low as 7.18, with a median of 8.57, all within the past year.
Investors should also recognize that OFG has a P/B ratio of 1.39. 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 1.57. Over the past year, OFG's P/B has been as high as 1.42 and as low as 1.17, with a median of 1.28.
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. OFG has a P/S ratio of 2.19. This compares to its industry's average P/S of 2.79.
Finally, we should also recognize that OFG has a P/CF ratio of 8.31. 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. OFG's current P/CF looks attractive when compared to its industry's average P/CF of 14.98. Over the past year, OFG's P/CF has been as high as 9.32 and as low as 7.17, with a median of 7.97.
These are just a handful of the figures considered in OFG 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 OFG is an impressive value stock right now.