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Should Value Investors Buy Eagle Bancorp Montana (EBMT) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company value investors might notice is Eagle Bancorp Montana (EBMT - Free Report) . EBMT is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 7.34, which compares to its industry's average of 10.60. Over the last 12 months, EBMT's Forward P/E has been as high as 11.92 and as low as 5.94, with a median of 7.52.
We should also highlight that EBMT has a P/B ratio of 0.67. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.91. EBMT's P/B has been as high as 0.86 and as low as 0.58, with a median of 0.65, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. EBMT has a P/S ratio of 0.91. This compares to its industry's average P/S of 1.8.
Finally, investors should note that EBMT has a P/CF ratio of 5.41. 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. EBMT's current P/CF looks attractive when compared to its industry's average P/CF of 12.14. Within the past 12 months, EBMT's P/CF has been as high as 6.72 and as low as 4.35, with a median of 4.90.
Value investors will likely look at more than just these metrics, but the above data helps show that Eagle Bancorp Montana is likely undervalued currently. And when considering the strength of its earnings outlook, EBMT sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Eagle Bancorp Montana (EBMT) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company value investors might notice is Eagle Bancorp Montana (EBMT - Free Report) . EBMT is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 7.34, which compares to its industry's average of 10.60. Over the last 12 months, EBMT's Forward P/E has been as high as 11.92 and as low as 5.94, with a median of 7.52.
We should also highlight that EBMT has a P/B ratio of 0.67. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.91. EBMT's P/B has been as high as 0.86 and as low as 0.58, with a median of 0.65, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. EBMT has a P/S ratio of 0.91. This compares to its industry's average P/S of 1.8.
Finally, investors should note that EBMT has a P/CF ratio of 5.41. 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. EBMT's current P/CF looks attractive when compared to its industry's average P/CF of 12.14. Within the past 12 months, EBMT's P/CF has been as high as 6.72 and as low as 4.35, with a median of 4.90.
Value investors will likely look at more than just these metrics, but the above data helps show that Eagle Bancorp Montana is likely undervalued currently. And when considering the strength of its earnings outlook, EBMT sticks out at as one of the market's strongest value stocks.