Back to top

Image: Bigstock

Are Investors Undervaluing FB Financial (FBK) Right Now?

Read MoreHide Full Article

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.

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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is FB Financial (FBK - Free Report) . FBK is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Another valuation metric that we should highlight is FBK's P/B ratio of 0.99. 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 1.15. Within the past 52 weeks, FBK's P/B has been as high as 1.59 and as low as 0.85, with a median of 1.19.

Finally, we should also recognize that FBK has a P/CF ratio of 8.56. 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 stock's P/CF looks attractive against its industry's average P/CF of 9.85. Over the past year, FBK's P/CF has been as high as 13.09 and as low as 8.03, with a median of 10.48.

Value investors will likely look at more than just these metrics, but the above data helps show that FB Financial is likely undervalued currently. And when considering the strength of its earnings outlook, FBK sticks out at as one of the market's strongest value stocks.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


FB Financial Corporation (FBK) - free report >>

Published in