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Should Value Investors Buy Riverview Bancorp (RVSB) Stock?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 company to watch right now is Riverview Bancorp (RVSB - Free Report) . RVSB 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 8.71, while its industry has an average P/E of 8.99. RVSB's Forward P/E has been as high as 10.15 and as low as 7.30, with a median of 8.47, all within the past year.

Finally, our model also underscores that RVSB has a P/CF ratio of 7.23. 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 8.25. Over the past year, RVSB's P/CF has been as high as 7.60 and as low as 5.33, with a median of 6.49.

These are only a few of the key metrics included in Riverview Bancorp'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, RVSB looks like an impressive value stock at the moment.


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