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Are Investors Undervaluing Private Bancorp of America (PBAM) Right Now?
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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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company value investors might notice is Private Bancorp of America (PBAM - Free Report) . PBAM is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 5.80, which compares to its industry's average of 11.09. PBAM's Forward P/E has been as high as 8.54 and as low as 5.20, with a median of 7.38, all within the past year.
We should also highlight that PBAM has a P/B ratio of 1.10. The P/B ratio pits a stock's market value against 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 1.65. PBAM's P/B has been as high as 1.43 and as low as 0.89, with a median of 1.22, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PBAM has a P/S ratio of 1.65. This compares to its industry's average P/S of 1.76.
Finally, we should also recognize that PBAM has a P/CF ratio of 5.13. 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. PBAM's P/CF compares to its industry's average P/CF of 11.70. PBAM's P/CF has been as high as 6.85 and as low as 4.21, with a median of 5.85, all within the past year.
These are only a few of the key metrics included in Private Bancorp of America'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, PBAM looks like an impressive value stock at the moment.
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Are Investors Undervaluing Private Bancorp of America (PBAM) Right Now?
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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company value investors might notice is Private Bancorp of America (PBAM - Free Report) . PBAM is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 5.80, which compares to its industry's average of 11.09. PBAM's Forward P/E has been as high as 8.54 and as low as 5.20, with a median of 7.38, all within the past year.
We should also highlight that PBAM has a P/B ratio of 1.10. The P/B ratio pits a stock's market value against 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 1.65. PBAM's P/B has been as high as 1.43 and as low as 0.89, with a median of 1.22, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PBAM has a P/S ratio of 1.65. This compares to its industry's average P/S of 1.76.
Finally, we should also recognize that PBAM has a P/CF ratio of 5.13. 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. PBAM's P/CF compares to its industry's average P/CF of 11.70. PBAM's P/CF has been as high as 6.85 and as low as 4.21, with a median of 5.85, all within the past year.
These are only a few of the key metrics included in Private Bancorp of America'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, PBAM looks like an impressive value stock at the moment.