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Are Investors Undervaluing Colony Bankcorp (CBAN) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.

Colony Bankcorp (CBAN - Free Report) is a stock many investors are watching right now. CBAN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 7.14, while its industry has an average P/E of 8.79. Over the past 52 weeks, CBAN's Forward P/E has been as high as 9.95 and as low as 6.81, with a median of 7.98.

Investors should also recognize that CBAN has a P/B ratio of 0.73. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. CBAN's current P/B looks attractive when compared to its industry's average P/B of 1.54. Within the past 52 weeks, CBAN's P/B has been as high as 1.08 and as low as 0.64, with a median of 0.76.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CBAN has a P/S ratio of 1.16. This compares to its industry's average P/S of 1.71.

Finally, our model also underscores that CBAN has a P/CF ratio of 5.66. 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. This stock's P/CF looks attractive against its industry's average P/CF of 9.62. Over the past 52 weeks, CBAN's P/CF has been as high as 7.98 and as low as 5.12, with a median of 5.92.

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


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