Back to top

Image: Bigstock

Should Value Investors Buy Bank7 (BSVN) Stock?

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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 to watch right now is Bank7 (BSVN - Free Report) . BSVN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 7.06, while its industry has an average P/E of 9.98. Over the past year, BSVN's Forward P/E has been as high as 9.29 and as low as 5.41, with a median of 6.59.

Another notable valuation metric for BSVN is its P/B ratio of 1.53. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. BSVN's current P/B looks attractive when compared to its industry's average P/B of 1.78. Over the past year, BSVN's P/B has been as high as 1.88 and as low as 1.12, with a median of 1.41.

Finally, our model also underscores that BSVN has a P/CF ratio of 8.65. 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. BSVN's P/CF compares to its industry's average P/CF of 12.08. BSVN's P/CF has been as high as 8.80 and as low as 5.09, with a median of 6.54, all within the past year.

If you're looking for another solid Banks - Southeast value stock, take a look at First Guaranty Bancshares (FGBI - Free Report) . FGBI is a # 2 (Buy) stock with a Value score of A.

First Guaranty Bancshares sports a P/B ratio of 0.64 as well; this compares to its industry's price-to-book ratio of 1.78. In the past 52 weeks, FGBI's P/B has been as high as 1.09, as low as 0.52, with a median of 0.63.

These are just a handful of the figures considered in Bank7 and First Guaranty Bancshares's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BSVN and FGBI is an impressive value stock right now.


See More Zacks Research for These Tickers


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


First Guaranty Bancshares, Inc. (FGBI) - free report >>

Bank7 Corp. (BSVN) - free report >>

Published in