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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.
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 value investors might notice is OP Bancorp (OPBK - Free Report) . OPBK is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 6.58 right now. For comparison, its industry sports an average P/E of 10.82. Over the past year, OPBK's Forward P/E has been as high as 7.19 and as low as 4.98, with a median of 6.11.
Another valuation metric that we should highlight is OPBK's P/B ratio of 0.78. 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. This stock's P/B looks attractive against its industry's average P/B of 1.60. Over the past 12 months, OPBK's P/B has been as high as 1.07 and as low as 0.62, with a median of 0.86.
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. OPBK has a P/S ratio of 1.13. This compares to its industry's average P/S of 1.74.
Finally, investors should note that OPBK has a P/CF ratio of 4.21. 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. OPBK's current P/CF looks attractive when compared to its industry's average P/CF of 11.38. Over the past year, OPBK's P/CF has been as high as 5.54 and as low as 3.27, with a median of 4.49.
These are only a few of the key metrics included in OP 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, OPBK looks like an impressive value stock at the moment.
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Is OP Bancorp (OPBK) Stock Undervalued 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.
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 value investors might notice is OP Bancorp (OPBK - Free Report) . OPBK is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 6.58 right now. For comparison, its industry sports an average P/E of 10.82. Over the past year, OPBK's Forward P/E has been as high as 7.19 and as low as 4.98, with a median of 6.11.
Another valuation metric that we should highlight is OPBK's P/B ratio of 0.78. 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. This stock's P/B looks attractive against its industry's average P/B of 1.60. Over the past 12 months, OPBK's P/B has been as high as 1.07 and as low as 0.62, with a median of 0.86.
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. OPBK has a P/S ratio of 1.13. This compares to its industry's average P/S of 1.74.
Finally, investors should note that OPBK has a P/CF ratio of 4.21. 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. OPBK's current P/CF looks attractive when compared to its industry's average P/CF of 11.38. Over the past year, OPBK's P/CF has been as high as 5.54 and as low as 3.27, with a median of 4.49.
These are only a few of the key metrics included in OP 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, OPBK looks like an impressive value stock at the moment.