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Should Value Investors Buy Luther Burbank (LBC) Stock?

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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.

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.

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 Luther Burbank . LBC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 9.79 right now. For comparison, its industry sports an average P/E of 13.04. Over the last 12 months, LBC's Forward P/E has been as high as 10.35 and as low as 7.38, with a median of 8.89.

Investors should also recognize that LBC has a P/B ratio of 0.89. 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 2.57. LBC's P/B has been as high as 1.15 and as low as 0.86, with a median of 1.01, over the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. LBC has a P/S ratio of 2.48. This compares to its industry's average P/S of 2.82.

Finally, we should also recognize that LBC has a P/CF ratio of 5.54. 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. LBC's P/CF compares to its industry's average P/CF of 21.01. Over the past year, LBC's P/CF has been as high as 7.70 and as low as 5.22, with a median of 5.81.

These are just a handful of the figures considered in Luther Burbank'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 LBC is an impressive value stock right now.

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