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Is BCB Bancorp NJ (BCBP) Stock Undervalued Right Now?

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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 value investors might notice is BCB Bancorp NJ (BCBP - Free Report) . BCBP 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 7.91 right now. For comparison, its industry sports an average P/E of 9.56. Over the past 52 weeks, BCBP's Forward P/E has been as high as 8.48 and as low as 4.19, with a median of 5.74.

We should also highlight that BCBP has a P/B ratio of 0.75. 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. This stock's P/B looks solid versus its industry's average P/B of 1.35. BCBP's P/B has been as high as 1.14 and as low as 0.57, with a median of 0.71, 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. BCBP has a P/S ratio of 1.18. This compares to its industry's average P/S of 1.84.

Finally, our model also underscores that BCBP has a P/CF ratio of 6.03. 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 stock's P/CF looks attractive against its industry's average P/CF of 11.61. Over the past year, BCBP's P/CF has been as high as 6.85 and as low as 3.93, with a median of 5.02.

Another great Banks - Northeast stock you could consider is Financial Institutions (FISI - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.

Additionally, Financial Institutions has a P/B ratio of 0.85 while its industry's price-to-book ratio sits at 1.35. For FISI, this valuation metric has been as high as 1.01, as low as 0.57, with a median of 0.68 over the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that BCB Bancorp NJ and Financial Institutions are likely undervalued currently. And when considering the strength of its earnings outlook, BCBP and FISI sticks out as one of the market's strongest value stocks.

See More Zacks Research for These Tickers

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Financial Institutions, Inc. (FISI) - free report >>

BCB Bancorp, Inc. (NJ) (BCBP) - free report >>

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