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Should Value Investors Buy Capital Bancorp (CBNK) Stock?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Capital Bancorp (CBNK - Free Report) . CBNK is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors should also recognize that CBNK has a P/B ratio of 1.41. 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. CBNK's current P/B looks attractive when compared to its industry's average P/B of 1.42. Over the past year, CBNK's P/B has been as high as 1.55 and as low as 0.94, with a median of 1.15.
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. CBNK has a P/S ratio of 1.66. This compares to its industry's average P/S of 1.89.
Finally, investors should note that CBNK has a P/CF ratio of 9.36. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.08. Over the past 52 weeks, CBNK's P/CF has been as high as 9.36 and as low as 5.22, with a median of 7.09.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Capital Bancorp is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CBNK feels like a great value stock at the moment.
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Should Value Investors Buy Capital Bancorp (CBNK) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Capital Bancorp (CBNK - Free Report) . CBNK is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors should also recognize that CBNK has a P/B ratio of 1.41. 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. CBNK's current P/B looks attractive when compared to its industry's average P/B of 1.42. Over the past year, CBNK's P/B has been as high as 1.55 and as low as 0.94, with a median of 1.15.
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. CBNK has a P/S ratio of 1.66. This compares to its industry's average P/S of 1.89.
Finally, investors should note that CBNK has a P/CF ratio of 9.36. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.08. Over the past 52 weeks, CBNK's P/CF has been as high as 9.36 and as low as 5.22, with a median of 7.09.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Capital Bancorp is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CBNK feels like a great value stock at the moment.