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Are Investors Undervaluing Associated BancCorp (ASB) 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.

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.

Associated BancCorp (ASB - Free Report) is a stock many investors are watching right now. ASB is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Investors should also recognize that ASB has a P/B ratio of 0.98. 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 2.36. Within the past 52 weeks, ASB's P/B has been as high as 1.01 and as low as 0.70, with a median of 0.86.

Finally, we should also recognize that ASB has a P/CF ratio of 8.36. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. ASB's P/CF compares to its industry's average P/CF of 16.30. Within the past 12 months, ASB's P/CF has been as high as 8.54 and as low as 6.05, with a median of 7.24.

These are only a few of the key metrics included in Associated BancCorp'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, ASB looks like an impressive value stock at the moment.


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