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Are Investors Undervaluing Flagstar Bancorp (FBC) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Flagstar Bancorp . FBC 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 7.83, while its industry has an average P/E of 9.63. Over the last 12 months, FBC's Forward P/E has been as high as 9.21 and as low as 4.56, with a median of 7.67.
Investors should also recognize that FBC has a P/B ratio of 0.79. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. FBC's current P/B looks attractive when compared to its industry's average P/B of 0.96. Within the past 52 weeks, FBC's P/B has been as high as 1.01 and as low as 0.63, with a median of 0.79.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. FBC has a P/S ratio of 1.49. This compares to its industry's average P/S of 2.56.
Finally, investors should note that FBC has a P/CF ratio of 5.85. 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 9.14. FBC's P/CF has been as high as 5.85 and as low as 3.43, with a median of 4.05, all within the past year.
Another great Financial - Savings and Loan stock you could consider is Riverview Bancorp (RVSB - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Riverview Bancorp also has a P/B ratio of 1.06 compared to its industry's price-to-book ratio of 0.96. Over the past year, its P/B ratio has been as high as 1.12, as low as 0.86, with a median of 1.02.
These are only a few of the key metrics included in Flagstar Bancorp and Riverview Bancorp strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, FBC and RVSB look like an impressive value stock at the moment.
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Are Investors Undervaluing Flagstar Bancorp (FBC) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Flagstar Bancorp . FBC 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 7.83, while its industry has an average P/E of 9.63. Over the last 12 months, FBC's Forward P/E has been as high as 9.21 and as low as 4.56, with a median of 7.67.
Investors should also recognize that FBC has a P/B ratio of 0.79. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. FBC's current P/B looks attractive when compared to its industry's average P/B of 0.96. Within the past 52 weeks, FBC's P/B has been as high as 1.01 and as low as 0.63, with a median of 0.79.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. FBC has a P/S ratio of 1.49. This compares to its industry's average P/S of 2.56.
Finally, investors should note that FBC has a P/CF ratio of 5.85. 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 9.14. FBC's P/CF has been as high as 5.85 and as low as 3.43, with a median of 4.05, all within the past year.
Another great Financial - Savings and Loan stock you could consider is Riverview Bancorp (RVSB - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Riverview Bancorp also has a P/B ratio of 1.06 compared to its industry's price-to-book ratio of 0.96. Over the past year, its P/B ratio has been as high as 1.12, as low as 0.86, with a median of 1.02.
These are only a few of the key metrics included in Flagstar Bancorp and Riverview Bancorp strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, FBC and RVSB look like an impressive value stock at the moment.